Halifax has revealed that house prices fell by 0.2% over the past three months.
It said the average price of a home in the UK is now £219,649.
Martin Ellis, Halifax housing economist, said: “House prices have stagnated over the past three months. Overall, prices in the three months to April were marginally lower than in the preceding three months; the first quarterly decline since November 2012. The annual rate of growth remained at 3.8% in April, the lowest rate since May 2013.
“Housing demand appears to have been curbed in recent months due to a deterioration in housing affordability driven by the sustained period of rapid house price growth during 2014-16. Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may also be constraining the demand for homes.
“A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale, should nonetheless help continue to underpin house prices over the coming months.”
Jeremy Duncombe, director of Legal & General Mortgage Club, added: “Today’s reduction in momentum for house price inflation is not necessary a bad sign for our housing market. It is all too easy to become preoccupied with these monthly fluctuations but what remains unchanged is the staggering gap between house price inflation and wage inflation.
“With the General Election on the horizon, it is important that the progress our current Government has made with the Housing White Paper does not fall down the priority list. Whatever the outcome, tackling our nation’s housing shortage needs to be at the top of the agenda for all political parties. The General Election provides the perfect opportunity for the successful party to truly make their mark and restructure of housing market once and for all.”
