Halifax has reported that average house price fell by 0.3% in April, following the 0.8% rise in March.
This causes the annual rate of house price growth to slow to 0.1%.
The typical UK property now costs £286,896 compared to £287,891 in March.
Kim Kinnaird, director of Halifax Mortgages, said: “After three consecutive months of growth, the average UK house price fell in April, down by -0.3% or around £1,000 over the month. The rate of annual house price inflation also slowed further to +0.1%, from +1.6% in March, meaning average property prices are largely unchanged from this time last year. A typical property now costs £286,896, which is around £7,000 below last summer’s peak, though still some £28,000 higher than two years ago.
“House price movements over recent months have largely mirrored the short-term volatility seen in borrowing costs. The sharp fall in prices we saw at the end of last year after September’s ‘mini-budget’ preceded something of a rebound in the first quarter of this year as economic conditions improved.
“The economy has proven to be resilient, with a robust labour market and consumer price inflation predicted to decelerate sharply in the coming months. Mortgage rates are now stabilising, and though they remain well above the average of recent years, this gives important certainty to would-be buyers. While the housing market as a whole remains subdued, the number of properties for sale is also slowly increasing, as sellers adapt to market conditions.
“Alongside a market-wide uptick in mortgage approvals, these latest figures may indicate a more steady environment. However, cost of living concerns remain real for many households, which will likely continue weigh on sentiment and activity. Combined with the impact of higher interest rates gradually feeding through to those re-mortgaging their current fixed-rate deals, we should expect some further downward pressure on house prices over the course of this year.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Contrary to other recent housing market surveys, these figures show we cannot be complacent about recovery as cost-of-living and mortgage worries persist, which are making buyers cautious about longer-term commitments unless they see real value.
“However, there is no doubt that we are much busier than we were a few months ago and the underlying feeling is that we are over the worst and will continue on a relatively even keel despite some ups and downs along the way.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The recent rise in Swap rates, which underpin the pricing of fixed-rate mortgages, has resulted in lenders removing their market-leading lower loan-to-value products, with the main players increasing pricing by 30 basis points. However, Swaps have since plateaued and have been edging downwards again so if this trend continues, we expect to see a return of five-year fixes at sub-4%, which will be a boost to buyers.
“First-time buyer numbers continue to prove resilient and with lenders returning to higher loan-to-value products, this will assist those struggling o get on the housing ladder.”