April witnessed the first quarterly fall in house prices in more than four years amid continuing signs of a market slowdown.
The latest Halifax House Price Index revealed prices in the three months to April were 0.2 per cent lower than in the preceding quarter - the first quarterly decline since November 2012.
House price inflation dropped 0.1 per cent on March’s figure, while the annual rate of growth remained unchanged at 3.8 per cent.
The average house price in the UK is now £219,649, the statistics show.
UK House Prices: Historical Data
All Houses, All Buyers (Seasonally Adjusted)
| Period | Index | Average Price | Change | Change | Change |
| 1983=100 | £ | % | % | % | |
| Apr-16 | 685.6 | 211,821 | -0.9 | 1.6 | 9.2 |
| May | 693 | 214,115 | 1.1 | 1.4 | 9.2 |
| Jun | 701.4 | 216,726 | 1.2 | 1 | 8.4 |
| Jul | 693.8 | 214,378 | -1.1 | 1.5 | 8.4 |
| Aug | 692.1 | 213,829 | -0.3 | 0.8 | 6.9 |
| Sep | 694 | 214,418 | 0.3 | 0 | 5.8 |
| Oct | 704.2 | 217.597 | 1.5 | 0.1 | 5.2 |
| Nov | 708.1 | 218,785 | 0.6 | 0.9 | 6 |
| Dec | 719.1 | 222,190 | 1.6 | 2.5 | 6.5 |
| Jan-17 | 711.2 | 219,741 | -1.1 | 2.3 | 5.7 |
| Feb | 711.5 | 219,839 | 0 | 1.7 | 5.1 |
| Mar | 711.3 | 219,788 | 0 | 0.1 | 3.8 |
| Apr | 710.9 | 219,649 | -0.1 | -0.2 | 3.8 |
Martin Ellis, Halifax housing economist, said: “Housing demand appears to have been curbed in recent months due to a deterioration in housing affordability driven by the sustained period of rapid house price growth during 2014-16.
“Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may also be constraining the demand for homes.
“A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale, should nonetheless help continue to underpin house prices over the coming months.”
HM Revenue & Customs data revealed sales in the first three months were 6 per cent higher than in the final quarter of 2016 and in line with the monthly average during 2014-2016.
The sector remains in the grip of a supply shortage, with the number of properties coming on to the market falling for the 13th month in a row in March, according to the Royal Institution of Chartered Surveyors.
Founder and chief executive of online estate agent eMoov.co.uk Russell Quirk said: “Another slight decline in the rate of house price growth on a monthly basis would suggest that the UK market has begun to naturally adjust after a long period of sustained inflation.
“We’ve seen an abundance of buyer demand and a lack of sufficient stock heat the market and it would seem that it is finally beginning to level out. This slow may also be due to a number of other influential factors such as the uncertain political landscape and, it will be interesting to see if the market bounces back over the coming months.
“That said, sellers are still seeing the price of their property increase annually and this slow in price growth will no doubt be welcomed by those on the other side of the fence, who are struggling to get on the ladder.”
simon.allin@ft.com
