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UK house price growth picked up in April, according to numbers from Halifax on Thursday.
House prices rose 3.2% on-year last month, picking up speed from a 2.9% increase in March. On-month, prices rose 0.3%, following a 0.5% fall in March from February.
‘We know the stamp duty changes prompted a surge in transactions in the early part of this year, as buyers rushed to beat the tax-rise deadline. However, this didn’t lead to a significant increase in property prices, with the last six months characterised by a stability in prices rarely seen since the pandemic. While the market has cooled slightly since this rush, buyer activity remains strong in comparison to recent years,’ Halifax analyst Amanda Bryden said.
‘Mortgage rates have continued to fall, with most lenders now offering rates below 4%. Coupled with positive earnings growth that has outpaced broader inflation, these factors have helped to steadily improve affordability for many buyers.’
From the end of March, the temporary increase in the zero-rate stamp duty thresholds ended. For first-time buyers of a home under £500,000, the zero-rate band fell to £300,000 from £425,000 currently. For other home buyers, the threshold reduced to £125,000 from £250,000. The measures were announced by UK Chancellor Rachel Reeves in the October autumn budget.
Bryden said the housing market is showing ‘resilience despite a subdued economic environment’ and some geopolitical risks.
‘There is likely to be a bump-up in consumer price inflation as household bills increase, but with further base rate cuts also expected, we anticipate a similar trend of modest price growth this year,’ Bryden added.
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