UK house prices fell for a second consecutive month in April, with annual growth halving to 0.4%, according to Halifax. The typical home cost £299,313, down 0.1% month-on-month, following a 0.5% decline in March.
The slowdown reflects heightened uncertainty from the Middle East conflict, which has pushed up energy prices and inflation expectations. Amanda Bryden, head of mortgages at Halifax, said recent global developments have made households more cautious, with borrowing costs rising and the cost of living again front of mind.
Average two-year fixed mortgage rates rose to 5.77% by Thursday, up from 4.83% in early March, while five-year rates increased to 5.69% from 4.95%, according to Moneyfacts. The conflict has disrupted earlier momentum, after house prices rose 0.8% month-on-month in January and 0.3% in February.
Chris Hodgkinson of House Buyer Bureau noted a growing disconnect between sellers' expectations and market reality, with buyers more price-sensitive and homes staying on the market longer. However, Nationwide reported a contrasting 3% annual price rise in April, highlighting differing measurement methods.
