After three consecutive months of growth, the average UK house price fell in April, down by 0.3 per cent or around £1,000 over the month. 

So says the Halifax, which adds that the rate of annual house price inflation also slowed further to 0.1 per cent, from 1.6 per cent 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.

Existing property prices have fallen by 0.6 per cent over the last year. In contrast new-build house prices continue to provide some support to the wider market, rising by 3.5 per cent year-on-year. 

The first-time buyer market is also proving to be more resilient, with average property prices up 0.7 per cent over the last year, compared to a fall of 0.1 per cent for home movers. 

The Halifax says one factor behind this difference may be that with rents continuing to rise sharply, it’s becoming increasingly cost effective to purchase a home, despite the challenge of raising a deposit and higher mortgage borrowing costs. 

Kim Kinnaird, director of Halifax Mortgages, says: “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 course of this year.”