House price growth has decreased by half due to the impact of the Middle East conflict on mortgage expenses, according to the latest report from Halifax. In April, national house prices saw a year-on-year increase of 0.4%, a slowdown from the 0.8% growth in March.
Amanda Bryden, the head of mortgages at Halifax, attributed this slowdown to recent global events causing uncertainty. Rising energy prices have contributed to inflation expectations, leading to a reevaluation of interest rate projections, resulting in higher borrowing costs for many potential buyers. This has made households more cautious, with a focus on the cost of living and careful consideration of property decisions.
Despite the decline in house prices, there are opportunities for first-time buyers, as the average price paid by this group is currently at its lowest point this year. The average UK house price decreased by 0.1% in April, reaching £299,313.
Halifax reported varying house price growth across different regions in the UK. Northern Ireland led with a 7.6% annual increase, followed by Scotland at 4.0% growth. Meanwhile, Wales experienced a slower annual growth rate of 0.7%. In England, the North East and North West saw significant annual price growth of 4.5% and 3.4%, respectively.
Experts in the field have advised potential buyers not to wait for further price drops, as market movements are unpredictable. They recommend reviewing mortgage options early and being prepared to act promptly if lenders adjust their rates.
Overall, the housing market outlook remains stable, with first-time buyers finding encouragement in the steady house prices. Concerns about inflation persist, leading to speculations about potential base rate increases by the Bank of England in the coming months. It is crucial for individuals with mortgages to explore new products and plan ahead for any potential financial challenges.