House price growth has slowed down by half due to the impact of the Middle East conflict on mortgage expenses, according to a statement from the Halifax. In April, prices increased by an average of 0.4% nationally year-on-year, a decrease from the 0.8% growth observed in March.
Amanda Bryden, the head of mortgages at the Halifax, pointed out that recent global events have introduced more uncertainty into the market. Rising energy prices have contributed to inflation expectations, leading to a reevaluation of interest rates and subsequently higher borrowing costs for many homebuyers. This has resulted in increased caution among households, with a focus on living expenses and careful consideration of property transactions.
The Halifax mentioned that the slowdown in house prices could offer opportunities for individuals aiming to enter the property market, as the average price paid by first-time buyers is currently at its lowest point this year. The average UK house price decreased by 0.1% in April compared to the previous month, bringing the average property value to £299,313.
In terms of regional trends, Northern Ireland leads in annual house price growth with a 7.6% increase, followed by Scotland with a 4.0% rise. Meanwhile, house price growth in Wales has slowed down to a 0.7% annual increase. In England, stronger price growth is concentrated in the northern regions, with the North East experiencing a 4.5% increase and the North West recording a 3.4% annual growth.
Experts in the industry have advised buyers and potential remortgagers against trying to predict market fluctuations. They recommend early review of mortgage options to adapt to potential pricing changes. While there is speculation about future interest rate adjustments by the Bank of England, individuals are encouraged to explore new mortgage products and plan ahead to manage any increased financial commitments effectively.
According to Halifax data, the average house prices and their annual changes have been outlined.
