Slowdown with 1% House Prices Fall in March

Halifax has published its latest property prices index for March 2024.  It demonstrated a slowdown in the property market after its boost in February.

• Property prices grew by +0.3% annually (vs +1.6% last month).
• House prices are still up +2.0% on previous quarter
• Average house prices fell by -1.0% in March on a monthly basis, following a rise of +0.3% in February.
• Typical UK home now costs £288,430, around £2,900 less than last month
• Northern Ireland remains strongest performing nation or region in the UK.

Comment

The presure of higher interest rates on remortgages and pressure on landlords is starting to tell.  Many people are remortgage from 2-3% mortgage deals to 5-6% deals currently.

Demand is falling but we suggest this will be temporary as interest rates will fall later this year and with wages rising faster than inflation as well as national insurance cuts, mortgage affordability will return and house prices will rise again.