Home > News > UK House Prices Stall, Southern England Most Affected

UK House Prices Stall, Southern England Most Affected

Property values in the south of England are under the greatest pressure, resulting in the lowest annual house price growth across the UK in over a decade, according to lender Halifax.

In April, average prices were 0.1% higher than the same month a year ago, marking the lowest growth rate since December 2012 and a decline from March’s annual growth rate of 1.6%.

Compared to the previous month, average prices fell by 0.3% in April, bringing the typical UK property price to £286,896. While this is approximately £7,000 below last summer’s peak, it remains £28,000 higher than two years ago.

The Halifax report provides a mixed picture of house prices across different regions of the UK.

Over the past year, the four regions of southern England experienced house price falls, with the southeast witnessing the most significant dip (0.6%), resulting in an average house price of £387,469. However, all other regions and nations in the UK saw positive annual price growth in April.

Buyers in the southern regions, including Greater London, eastern England, the southeast, and the southwest, face the highest average property prices and bear the brunt of increased borrowing costs following 11 successive interest rate rises by the Bank of England. London continues to have the most expensive homes in the country, with the average price falling by 0.2% year on year to £538,409.

Northern Ireland followed closely with an annual growth of 2.7% to £186,846, while Scotland experienced an annual gain of 2.2% to an average of £201,489, and Wales saw a 1% growth to £216,559.

Kim Kinnaird, the director of Halifax Mortgages, noted that recent house price movements have largely mirrored short-term volatility in borrowing costs. The sharp price fall at the end of last year, after September’s mini-budget, was followed by a rebound in the first quarter of this year as economic conditions improved.

Kinnaird emphasized the economy’s resilience, supported by a robust labour market and predicted a sharp deceleration in consumer price inflation in the coming months. Mortgage rates are stabilizing, albeit remaining higher than the average of recent years, which provides important certainty for prospective buyers. While the housing market remains subdued, there is a slow increase in the number of properties for sale as sellers adapt to market conditions.

HICH LTD has continually raised the quality standards in the UK property survey market. Our multi-award-winning property survey service has made us the leading reference in the property survey market.

We offer property survey services of the highest quality. Using state-of-the-art equipment, we provide excellent property surveys at affordable prices. Our prices are based on the number of rooms rather than the value of the properties, so you will always get the best value for money with our services.

Please look at our Trustpilot page and see why customers have chosen us as their favourite property survey provider!

At HICH LTD, we work to serve our clients and make the world a better place for everyone. We actively collaborate with NGOs to promote environmental, social and charitable causes. If you want to know more about our efforts or how you can help, contact us at admin@hich-ltd.co.uk.

HICH LTD extends a warm invitation to contractors and service providers throughout the UK to join our network; by joining the Contractors and Service Providers Network, you will enjoy benefits such as a significant increase in customer flow, advertising on our high-traffic website, and direct contact with thousands of customers in your postcode area. Find more information here or by following the QR code in the video.