House prices rise in April: ‘The market is baring its teeth’
House prices in the UK ticked up in April as the market unexpectedly bounced back from the end of stamp duty relief.
According to Halifax, house prices increased by 0.3 per cent in April vs a fall of 0.5 per cent in March, making the average property now £297,781.
Prices have been remarkably stable over the last six months despite affordability concerns, down by just £48 across the UK.
“The market is baring its teeth,” Jeremy Leaf, north London estate agent and a former RICS residential chairman, said.
“Activity has been supported by strong employment, steady inflation and the southerly direction of travel for mortgage rates, even if cuts are made later rather than sooner than anticipated,” Leaf added.
However, there is uncertainty on how quickly the bank will move to cut rates further. As of May, markets have priced in a further three cuts, but some analysts put the number of cuts as high as six in February.
But housing analysts are positive about the year ahead.
“We’ve already seen many lenders reintroducing sub four percent mortgage products and, as greater mortgage affordability continues to fuel buyer market activity, the expectation is that house prices will climb further over the course of the year,” chief sales officer for Foxtons, Jean Jameson, said.
CEO of Yopa, Verona Frankish, added: “We saw the market momentarily pause for breath ahead of the recent stamp duty deadline… [but] the market has immediately bounced back.
“This further boost to current market sentiment will only strengthen the performance of the property market and we expect that house prices will continue to climb over the remainder of the year.”