Annual house price inflation slowed to just 0.1% in April, a significant fall from 1.6% in March, according to the latest Halifax House Price Index.

The average UK house price fell on a monthly basis by 0.3% in April, a figure worth a drop of £1,000, following three consecutive months of growth that included a 0.8% rise in March.

Halifax’s latest data has shown that a typical property now costs £286,896, which is around £7,000 below the peak recorded last summer. However, prices are still £28,000 higher than they were two years ago.

Director at Halifax Mortgages, Kim Kinnaird, said that house price movements in recent months have “mirrored the short-term volatility” seen in borrowing costs.

“The sharp fall in prices we saw at the end of last year after September’s mini-Budget preceded something of a rebound in the first quarter of this year as economic conditions improved,” Kinnaird commented.

“The economy has proven to be resilient, with a robust labour market and consumer price inflation predicted to decelerate sharply in the coming months. Mortgage rates are now stabilising, and though they remain well above the average of recent years, this gives important certainty to would-be buyers. While the housing market as a whole remains subdued, the number of properties for sale is also slowly increasing, as sellers adapt to market conditions.”

Alongside a market-wide uptick in mortgage approvals, Kinnaird suggested that the latest Halifax figures may indicate a “more steady environment”, but also warned that cost of living concerns will likely continue to weigh on sentiment and activity across UK households.

“Combined with the impact of higher interest rates gradually feeding through to those remortgaging their current fixed rate deals, we should expect some further downward pressure on house prices over course of this year,” she added.

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