Property prices rose by 0.3 per cent annually over March, representing a slowdown in growth.
The latest Halifax House Price index revealed on a quarterly basis, house prices climbed by 2 per cent but overall the growth has slowed.
Halifax Mortgages director, Kim Kinnaird, explained this stalling, saying: “Financial markets have become less optimistic about the degree and timing of base rate cuts, as core inflation proves stickier than generally expected.
“This has stalled the decline in mortgage rates that had helped to drive market activity around the turn of the year.”
The housing market experienced a monthly fall after five consecutive months of growth, with prices falling by 1 per cent in March when compared to February, leaving the average house price at £288,430.
However, Kinnaird, stated: “That a monthly fall should occur following five consecutive months of growth is not entirely unexpected particularly in view of the reset the market has been going through since interest rates began to rise sharply in 2022.
“Despite this, house prices have shown surprising resilience in the face of significantly higher borrowing costs.”
Finder.com property expert, Kate Steere, added: “Today’s figures show that the events from last year are still weighing heavily on prospective buyers' minds.
“While lenders have cut mortgage rates and wage growth has outstripped inflation, the turmoil from the past 12 months is still casting a dark shadow on demand.
“The Bank of England’s decision to hold rates has dampened UK house price recovery.”
Northern Ireland remained the strongest performing nation or region in the UK where house prices increased by 4.3 per cent on an annual basis.
As a result, properties in Northern Ireland now cost an average of £194,743, which is £7,972 more than a year ago.
In England, a slight north/south divide was discovered in which the North West saw the strongest growth, up by 3.7 per cent on an annual basis to £323,315.
Conversely, properties in Eastern England recorded the biggest decline, falling by 0.9 per cent, with homes selling for an average of £330,627, a drop of £2,878 over the last year.
London continued to have the highest average house price in the UK, at £539,917 after prices in the capital increased by 0.4 per cent over the last year.
tom.dunstan@ft.com
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