You are here: Home - Mortgages - First Time Buyer - News -

Annual house price growth slows to 1.6% in March

0
Written by: Anna Sagar
06/04/2023
The annual rate of house price growth slowed in February to 1.6 per cent, which is down from 2.1 per cent for the last three months in a row.

According to Halifax’s latest House Price Index, this is the weakest rate of annual growth in three and a half years and down on the peak of plus 12.5% in June 2022.

Monthly average house price growth came to 0.8% in March, compared to a 1.2% rise in February, showing “resilience” in the housing market.

Average property price up

The report said that the average UK property costs £287,880, which is up from £285,660 in February. This is around 2% below the peak reached last August.

Northern Ireland reported the strongest annual house price growth at 4.9%, with the average house price coming to £186,459. This was followed by the West Midlands at 3.8% with properties reaching £248,308.

Wales’ annual house price growth was pegged at 1%, with average property price coming to £213,950, while in Scotland, the annual price growth figure came to 2.3% and the average property price was £199,853.

Greater London had the lowest annual growth at 0.1%, with the average now £537,250.

Housing market showing ‘resilience’

Kim Kinnaird, director of Halifax Mortgages, said that the UK housing market “continues to show resilience following the sharp downturn at the end of 2022”.

She continued that overall these figures “suggest relative stability in the housing market” at the start of the year.

“This has been characterised by a partial recovery in activity and transactions, especially when compared to the significant drops seen at the end of last year, with latest Bank of England data showing mortgage approvals rising for the first time in six months,” Kinnaird added.

She noted that the main factor behind the improved picture was an easing in mortgage rates, with the spikes of November and December “largely reversed”.

Kinnaird said that while mortgage rates are higher than they have been over the last decade a typical two-year fixed rate is down by more than 100 basis points over the last few months.

She added that the labour market was strong with unemployment at a historical low of 3.7%.

“Predicting exactly where house prices go next is more difficult. While the increased cost of living continues to put significant pressure on personal finances, the likely drop in energy prices – and inflation more generally – in the coming months should offer a little more headroom in household budgets.

“While the path for interest rates is uncertain, mortgage costs are unlikely to get significantly cheaper in the short term and the performance of the housing market will continue to reflect these new norms of higher borrowing costs and lower demand. Therefore, we still expect to see a continued slowdown through this year,” Kinnaird explained.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Octopus steps in to buy Shell Energy – what customers need to know

The deal is expected to complete in the fourth quarter of 2023 and will take Octopus Energy’s retail supply ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week