Annual house price growth in the UK remained “subdued” at just 0.9 per cent in April, when compared to the same month in 2018, according to the latest Halifax House Price Index.

In the month, property prices increased by 0.4 per cent over March 2019, with the average house price rising to £214,920 from £213,102 in the month.

Commenting on the figures, Nationwide chief economist Robert Gardner said: “Indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable in recent months, even though survey data suggests that sentiment has softened.”

Gardner added that measures of consumer confidence weakened, while surveyors reported that new buyer enquiries have subdued, as has the number of new properties coming onto the market. However, the economist highlighted that the impact has not “been enough” to prevent a modest shift in the balance of supply and demand in favour of buyers in recent months.

The figures from April represent the fifth consecutive month in a row in which annual house price growth has been below 1 per cent.

Despite this, first-time buyers seem to be taking advantage of the current ongoing economic uncertainties and low-interest rate environment, with the number of them entering the housing market steadily increasing in recent quarters.

Gardner said: “While house prices remain high relative to average earnings, low mortgage rates have helped to support mortgage affordability. Indeed, raising a deposit appears to be the major barrier for prospective first-time buyers, since the cost of servicing the typical mortgage remains in line with or below long-run averages as a share of take-home pay in most regions of the UK.

“The exception is in London and parts of the south of England where affordability pressures are more acute, and the monthly cost of servicing a mortgage, as well as raising a deposit, poses a greater challenge.”

However, Unmortgage CEO Ray Rafiq-Omar said that “reluctant renters, those who can’t quite get their foot onto the housing ladder, will continue to be disheartened as house price growth remains flat”.

“The truth is that home ownership is still out of reach for too big a proportion of society. We need a genuine rethink of how people live to help address the issues currently facing the market, we know the demand for properties is there – the problem is the lack of suitable options. Innovation from both Government and business is urgently needed to open up the housing market to more people.”

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