House prices “under greatest pressure” in London and south east as rate hikes take their toll
The average price of a home dipped slightly by 0.3 per cent in April but homes in the South of England and London remain “under the greatest pressure” – with buyers and homeowners facing the most expensive property prices and borrowing costs.
Figures published this morning by Halifax show that prices of homes across the UK fell slightly to £286,000 this month, compared to £287,000 last month, as the sector and prospective buyers continue to navigate high inflation.
“After three consecutive months of growth, the average UK house price fell in April,” Kim Kinnaird, director at Halifax Mortgages, said.
“The rate of annual house price inflation also slowed further to 0.1 per cent, from 1..6 per cent in March, meaning average property prices are largely unchanged from this time last year,” she added.
However, Halifax said there’s an “increasingly mixed picture” emerging for house prices across the UK.
The four regions of Southern England have seen average house prices fall over the last year, with the South East registering the largest dip, with prices falling yearly by 0.6 per cent.
Greater London, Eastern England and the South West remain the most expensive as buyers face the most expensive average property prices, and “therefore the biggest impact of higher borrowing costs,” the bank said.
The capital remains the most expensive region to buy a home with the average cost of a property now £538,409 and annual rate growth sits at -0.2 per cent.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Contrary to other recent housing market surveys, these figures show we cannot be complacent about recovery as cost-of-living and mortgage worries persist, which are making buyers cautious about longer-term commitments unless they see real value.
“However, there is no doubt that we are much busier than we were a few months ago and the underlying feeling is that we are over the worst and will continue on a relatively even keel despite some ups and downs along the way.”