Annual house price growth slowed again according to the latest UK House Price Index published by the Office for National Statistics (ONS), down to 4.1% in year to March.

The latest figure is down from a rate of 5.8% in the year to February.

It left the average UK house price standing at £285,000 in March, a total £8,000 below a recent peak in November 2022. However, the current average remains £11,000 higher than it was 12 months ago.

Average house prices increased over the year to £304,000 in England (4.1%), £214,000 in Wales (4.8%), £185,000 in Scotland (3.0%) and £172,000 in Northern Ireland (5.0%). The ONS data confirmed that the South West again saw the highest annual percentage change of all English regions in the year to March 2023 (5.4%), with London again seeing the lowest (1.5%).

“Despite house prices coming down from the record highs seen in 2022, the figures today should provide buyers with some confidence in that they remain well above pre-pandemic levels,” commented managing director of mortgages at MPowered Mortgages, Emma Hollingworth.

“Whilst the Bank of England’s decision in May to raise the base interest rate to 4.5%, along with recent market shocks such as the failure of Silicon Valley Bank, have led to some uncertainty in the mortgage market, a renewed stability in mortgage rates over the last few months is bringing buyers back into the market.

“Additionally, lenders and brokers are giving consumers every reason to be optimistic, as they work to understand customer needs, and offer rates that are as affordable as possible despite interest rate rises.”

Technical director at Legal & General Surveying Services, Malcolm Webb, said the latest ONS data suggests that confidence in the property market is “slowly returning”, although not quite to the highs of this time last year.

“Momentum is picking up once again as market activity remains in line with pre-pandemic levels,” he said. “Strong product innovations, such as the release of Skipton Building Society’s new 100% LTV mortgage product, are providing more options to potential buyers, particularly those stuck in the rental cycle.

“We hope that the upcoming busy summer selling period will continue to defy the gloomy outlook predicted at the beginning of the year. However, with inflation and living costs where they are it’s critical not to skimp on a home survey as it is vital purchasers have as much insight as possible into the property they’re buying, and any potential additional costs they could be facing, before signing on the dotted line.”

CEO and founder of Smartr365 and Capricorn Financial Consultancy, Conor Murphy, added: “Market conditions remain extremely favourable as we head into the busier summer selling period. Swap rates and interest rates are competitive, product innovation is strong, and lenders remain keen to add to their loan books. First-time buyers will also be encouraged by this further correction to house prices.

“With all these positive factors in mind, many buyers will be eyeing up a purchase and keen to get the ball rolling quickly. Mortgage technology offers a crucial helping hand here, streamlining processes which ultimately helps all parties.”

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