In April 2024, UK house prices edged up slightly by 0.1%, with Halifax indicating a stabilisation despite ongoing high mortgage rates and increased borrower caution.
In April 2024, UK house prices saw a minimal increase of 0.1%, stabilising after a decrease of 0.9% in March, bringing the average house price to £288,949. This adjustment reflects an annual growth rate of 1.1%, as reported by Halifax. Amanda Bryden, head of mortgages at Halifax, indicated that this steadiness is coming amidst elevated mortgage rates, prompting first-time buyers to focus on smaller properties due to the higher borrowing costs.
The housing market dynamics are also showing signs of activity with mortgage approvals reaching an 18-month high. This peak suggests a recovering demand despite the affordability challenges linked to increased mortgage rates. These higher borrowing costs appear linked to expectations that the Bank of England will slow down the pace of interest rate cuts.
Property analysts at Savills have revised their forecasts based on these trends, now predicting a 2.5% increase in house prices for 2024. Furthermore, the UK construction sector reported a robust expansion in April 2024, marking its fastest growth in over a year, which aligns with the experiences of resilience in the broader housing market.