House prices remained broadly stable in April, with only a slight monthly dip. The housing market is continuing to show resilience across many parts of the UK.

House prices remained stable in April, dropping by just 0.1% despite the current economic uncertainty, according to Halifax's latest House Price Index. This follows a 0.5% fall in March. The average UK property price now stands at £299,313, compared with £299,609 in March. Annual house price growth has slowed to 0.4% from 0.8% in March.

‘After a strong start to the year, recent global developments have added a greater degree of uncertainty to the outlook,’ says Amanda Bryden, Head of Mortgages at Halifax. ‘In particular, higher energy prices have fed into inflation expectations, prompting markets to reassess the path for interest rates – a shift that has already pushed up borrowing costs for many buyers.’

Cautious spending

Consumers are becoming more cautious about spending, with the cost of living at the forefront of people’s minds. ‘Even so, the housing market continues to display the resilience that has been its hallmark in recent years,’ adds Bryden. ‘While activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation.’

Halifax adds that the majority of homeowners are on fixed-rate mortgage deals, which means they are largely protected from short-term changes in interest rates.

‘A slower pace of house price growth may be disappointing news for existing homeowners,’ adds Bryden. ‘However, for those looking to step onto the property ladder, stable prices are helpful, even if higher mortgage rates mean affordability remains stretched. The average price paid by first-time buyers has fallen slightly to £238,908, its lowest level so far this year.’

Regional variation

House prices vary by region. Northern Ireland remains the area with the highest house price growth, up 7.6% over the past year to £224,851. Scotland saw prices rise by 4% annually to an average price of £222,448.

In England, the strongest growth is in the North. The North East recorded price rises of 4.5% annually, and the North West of 3.4%. Southern areas have seen annual prices fall by 2% year-on-year, and London by 1.4%.