UK house prices hold steady in April

According to Halifax, British house prices rose 0.1% in April month-on-month and 1.1% year-on-year. The average house price in April now stands at £288,949. In the previous month, UK house prices fell by about £2,900 in March with the typical property value down around 1%, the first drop in six months. This morning’s data is boosting housebuilder stocks, with the FTSE 350 Construction and Materials index in the green.  

Despite the modest rebound in April’s data, Halifax said ‘average house prices have largely plateaued’, reflecting the challenging backdrop of expensive borrowing costs and a chronic shortage of housing supply that have stemmed a steep slide in house prices that would support housing market activity and first-time buyers in particular. Halifax said first-time buyers are looking more and more towards smaller properties to offset affordability problems instead. 

It looks like mortgage rates will continue to remain elevated, with the Bank of England poised to keep interest rates at 16-year highs of 5.25% this Thursday. Financial markets have been pushing back their forecasts for the timing of the first rate hike this year, with August currently pencilled into the diary, although that could certainly change depending on the data.

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According to Halifax, British house prices rose 0.1% in April month-on-month and 1.1% year-on-year. The average house...

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