House prices fell -0.5% in March, following the modest +0.3% increase seen in February, says the Halifax. 

As a result, the average property price is now £299,677. 

The pace of annual growth has also eased, slowing to +0.8% from +1.2% the previous month, suggesting the market has lost some momentum as spring begins.

Amanda Bryden, Head of Mortgages at Halifax, says: “The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East. 

“Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year. 

“The effect on house prices will largely depend on how long‑lasting these pressures prove to be and the wider implications for the economy and unemployment. 

“Mortgage rates are a key factor for buyers, particularly those getting on the ladder for the first time, who are already balancing the challenge of saving a deposit, with the cost of borrowing.

“As a result, many are likely to watch movements in mortgage rates closely, before making a decision on any home purchase.”