UK house prices rose by 1.6% between March and April, according to the latest figures from the Halifax House Price Index.
The index shows the average price of a UK home has jumped from £192,970 to £196,412.
However, Halifax says that house prices in the three months to April were only 2.2% higher than in the previous quarter. This figure means the underlying rate of house price growth fell for the first time in 2015 following three successive rises.
That said, annual house price growth is up slightly from 8.1% to 8.5%, though this is still well below last July’s peak of 10.2%.
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How house prices have changed
Here’s how house prices have changed over the last year according to the Halifax House Price Index.
|
Month/year |
Average house price |
Monthly change |
Quarterly change |
Annual change |
|
April 2014 |
£177,524 |
-0.3% |
2.2% |
8.5% |
|
May 2014 |
£184,566 |
4% |
1.8% |
8.7% |
|
June 2014 |
£183,825 |
-0.4% |
2.3% |
8.8% |
|
July 2014 |
£186,073 |
1.2% |
3.5% |
10.2% |
|
August 2014 |
£186,101 |
0% |
2.9% |
9.7% |
|
September 2014 |
£186,898 |
0.4% |
2.7% |
9.6% |
|
October 2014 |
£186,223 |
-0.4% |
0.9% |
8.8% |
|
November 2014 |
£187,197 |
0.5% |
0.8% |
8.1% |
|
December 2014 |
£189,304 |
1.1% |
0.3% |
7.8% |
|
January 2015 |
£192,954 |
1.9% |
1.8% |
8.5% |
|
February 2015 |
£192,372 |
-0.3% |
2.6% |
8.3% |
|
March 2015 |
£192,970 |
0.4% |
2.6% |
8.1% |
|
April 2015 |
£196,412 |
1.6% |
2.2% |
8.5% |
Source: Halifax
What’s behind the rise?
[SPOTLIGHT]Halifax says housing demand is being supported by economic improvement, rising employment and low mortgage rates.
But at the same time supply remains tight with a general shortage of properties for sale. New instructions fell in March, continuing the recent downward trend.
Halifax thinks this combination has kept house price inflation steady in recent months.
But the bank warns house prices are continuing to increase more quickly than average earnings. So the result may means house price growth slows down over the remainder of the year.
It forecasts the annual rate of house price growth will end the year at between 3% and 5%.
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