Annual house prices in the UK grew by 3.5 per cent in April according to the latest house price index from HM Land and Registry, down from 4.1 per cent the previous month.
In data published yesterday (June 22), it showed that at £286,000, the average house price in April of this year was £9,000 higher than a year earlier. However, this remains £7,000 below the recent peak in September 2022.
Price inflation was highest in the North East of England where prices rose by 5.5 per cent in the 12 months to April 2023.
Meanwhile, London was the English region with the lowest annual growth, where prices increased by 2.4 per cent in the 12 months to April 2023.
Looking at England as a whole, the average house price increased by 3.7 per cent on an annual basis.
Annual price change for UK by country over the past 5 years
Source: HM Land and Registry
Northern Ireland was the UK region with the steepest annual house price growth at 5 per cent, while Scotland and Wales were equal at 2 per cent.
Matt Thompson, head of sales at estate agents Chestertons, said the capital’s lack of housing supply meant the market remained competitive in April with buyers competing for properties.
“In an attempt to beat the competition, many house hunters used the Easter holidays to continue their property search and arrange viewings for early May,” Thompson said.
“Whilst strong demand has allowed the majority of sellers to secure their asking price, buyers were often left having to compromise. This was particularly the case for first-time buyers or house hunters with smaller budgets,” he added.
Other property experts noted that while the housing market has been resilient, rising mortgage rates are starting to impact growth in house prices.
Nicky Stevenson, the managing director of national estate agent Fine & Country said despite this, the market remains strong with buyers benefiting from rising stock levels.
Fine and Country saw its agreed sales at the end of May reach their highest level of the year so far, up 11 per cent on the five-year average on the same period.
“However, there are some potentially darker clouds on the horizon as mortgage products are being pulled and the banks and borrowers are on tenterhooks awaiting the Bank of England base rate decision this week,” Stevenson said.
“People have got more used to the higher interest rate environment, but we could see further downward pressure placed on house prices if 6 per cent fixed rates remain the norm.”
jane.matthews@ft.com
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