Annual house price growth continues to decline – Land Registry
Annual house price growth continued its decline in April but bounced back on a monthly basis, Land Registry figures have revealed.
The data will reignite the debate about the health of the housing market.
The latest Land Registry House Price Index shows average annual price growth slowed from 4.1% in March to 3.5% during April.
But on a monthly basis, price growth was up 0.5% compared with a 0.9% decline previously.
It is the first time average prices have grown on a monthly basis since October 2022.
Commenting on the data, Tom Bill, head of UK residential research at Knight Frank, said:
“The UK housing market spent the first few months of 2023 overcoming the impact of the mini-Budget.
“The next hurdle is high inflation, which will keep upwards pressure on mortgage rates this year.
“We expect house prices to fall by around 5% and transaction volumes will be squeezed as rate uncertainty persists.
“That said, the wage growth driving core inflation higher is one of the reasons we don’t expect a steep double-digit decline in house prices.
“Record levels of housing equity, the availability of longer mortgage terms, a stable banking system and the recent popularity of fixed-rate products should also prevent a collective cliff-edge moment for the UK housing market.”
Nick Leeming, chairman of Jackson-Stops, said the figures continue to point to a modest market rebalancing after the rapid acceleration of house prices during the pandemic.
Nick Leeming said:
“Whilst house prices may decline marginally across some areas as a as the year progresses the harsh reality continues to be that those at the lower end of the market will find themselves riding the biggest waves.
“First-time buyers are faced with rising bills and dwindling deals, having to readjust their expectations.
“Both the Bank of England and the Government are acutely aware of the consequences of a high inflationary environment, but the tactic of rising interest rates alone may not yet be enough to turn the tide.
“Interest rates may still not have peaked.
“This means that today’s market, even with its challenges, continues to be a good time to sell for buyers committed to moving and wanting to achieve a good price, before any market readjustments filter through.”
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Main article photo courtesy of Pixabay
