The latest data from Halifax shows house prices fell 1 per cent in March after five consecutive months of growth.
The bank said affordability remains a challenge for potential buyers due to recent house price falls. mortgage interest rate has stalled.
At the same time, financial markets have become less optimistic about the timing and extent of such a move. cut interest rates Commentators say the Bank of England will take action this year while core inflation remains “sticky”.
Halifax is the second major lender this week to report a month-on-month decline in house prices.
Separate figures from the National Association of UK building societies, the UK’s largest building societies, found they had fallen Growth in March was 0.2% and year-on-year growth was 1.6%.
Halifax said the average house sold for £288,430 in March, about £2,900 less than the previous month.
However, it said house prices increased by 0.3% year-on-year and 2% month-on-month.
Finance Latest News: How difficult is it to get a mortgage if you’re self-employed?
Kim Kinnaird, head of mortgages at the bank, said: “A monthly fall after five consecutive months of growth is not entirely unexpected, especially given the correction the market has been undergoing since 2017 when interest rates began to rise sharply into 2022.
“Nonetheless, house prices have shown surprising resilience in the face of sharp increases in borrowing costs.
“Affordability constraints remain a challenge for potential buyers, while existing homeowners with cheaper term deals are yet to feel the full impact of rising interest rates.
“This means the housing market still needs to fully adjust and sellers are likely to price their properties accordingly.”
She added that while underlying demand was “positive”, the market “remains sensitive to the scale and pace of interest rate changes”.
Read more from Sky News:
Ex-Tottenham boss sentenced for insider trading
Tube strike called off, but rail strike continues
Vodafone-Three merger in doubt
Guy Gittins, chief executive of estate agency Foxtons, said: “House prices have continued to rise since the start of the year, with improving market health driven by a return to UK homebuyer appetite.
“While higher mortgage rates certainly remain a barrier, buyer activity levels have increased dramatically, and not just in the form of inquiries and viewings, but more offers being made.
“With interest rates widely expected to fall sooner or later, we expect market conditions to only continue to improve as buyer confidence grows.”
Imogen Pattison, assistant economist at Capital Economics, said: “Looking ahead, we expect mortgage rates to continue to be higher than in January and February and to linger over the next few months. At just under 5%, this would dampen demand and prevent further increases in home loan prices.”
“But given the optimistic public housing price expectations, we doubt prices will fall significantly.”
Rightmove said the Thursday before the Easter bank holiday weekend was the third-biggest day for new homes to hit the market since August 2020.
The firm’s Tim Bannister said: “This remains a price-sensitive market, so while the increased activity we’ve seen over the past few months is a positive sign, sellers still need Listening to agents’ advice on competitive pricing helps ensure a successful sale.”
Follow us on Google news ,Twitter , and Join Whatsapp Group of thelocalreport.in
