As a result, the average house price now stands at £260,441. However, the annual rate of house price growth remains negative at -2.7 per cent. That’s up from the -3.1 per cent registered in March.
Robert Gardner, chief economist at Nationwide Building Society, said that there were “tentative signs of recovery” in house prices, noting that industry data on mortgage applications points to “signs of a pickup”.
Gardner added that confidence among consumers around their financial circumstances is improving, and may be bolstered further if inflation falls in the months ahead.
He concluded: “If gains in nominal incomes remain solid ‒ wage growth has been running at above seven per cent in the private sector – this, together with weak or declining house prices, will help improve housing affordability over time, especially if mortgage rates continue to trend lower.”
The end is in sight
Mark Harris, chief executive of mortgage broker SPF Private Clients, said the spring market is starting to kick into gear, with buyers and sellers seeing an end in sight for both high inflation and interest rates.
He added: “Swap rates, which underpin the pricing of fixed rate mortgages, have risen again on the back of short-term volatility. However, lenders continue to reduce their fixed rates, albeit at a slower pace than before, with bigger reductions seen on higher loan-to-value mortgages as they try to attract first-time buyers.”
Pragmatism is back
According to Jonathan Hopper, CEO of Garrington Property Finders, the fact that mortgage rates have settled after the chaos following the mini-Budget has brought some “much-needed calm and pragmatism” to the market.
He continued: “With average prices still falling in many areas, this is unquestionably a buyer’s market. Proceedable buyers who have their finances in place invariably hold a strong hand, with sellers fighting for their attention and often agreeing to a significant discount just to get a deal done.”
There may be trouble ahead
Karen Noye, mortgage expert at Quilter, noted it had been a “torrid few months” for the housing market, and questioned whether this was the start of rising house prices once again.
She added: “It is likely more interest rate rises are coming down the line, which will inevitably push mortgage rates up, but so far, homeowners appear to be coping with these heightened costs, preventing a huge slide in house prices. Clearly if we witness anything like the volatility of last year that will be a different matter. The health of the property market and the extent of demand will be tested during the traditionally busy spring and summer months.”
