UK House Prices fall 3.1% in April

UK House prices fall 3.1 % in April 2018
UK House prices fall 3.1 % in April 2018
  • Prices fall -3.1% in April
  • Sales drop -7.2% between February and March
  • Biggest monthly drop in 8 years
  • Annual price growth +2.2% 

House prices have dropped by 3.1 per cent in April, according to Halifax in their latest house price index. This follows a 1.6 per cent rise in March. Prices in the last three months to April were 2.2 per cent higher than in the same period a year earlier.

UK home sales dropped by 7.2% between February and March to 92,270 – the lowest level since May 2016 (88,680). Since the end of last year home sales have averaged 97,000 per month since December.

Bank of England industry-wide figures show that number of mortgages approved fell for the second consecutive month in March to 62,914 – a drop of 1.4%.

Director of Halifax,Russell Galley, said: “We’ve seen annual house price growth ease from 2.7% in March to 2.2% in April. House prices in the three months to April were 0.1% lower than the previous three months. Both the quarterly and annual rates have fallen since reaching a recent peak last autumn, with these measures providing a more stable indication of the underlying trend than the monthly change.”

Galley further states that the housing demand has softened in the early months of 2018, with both mortgage approvals and completed home sales edging down.

However, the strength of the UK labour market combined with low unemployment and wage growth should help ease pressure on household finances. Halifax, therefore, expects annual house growth to remain in their forecast range of 0-3 per cent this year.