House prices in the last three months were 2.3% higher than in the preceding three months, Halifax has reported.
House price change on this measure has now been steady in the range 1.8% – 2.3% for the past 11 months, it added.
Prices in the three months to April were 8.5% higher than in the same three months a year earlier. This was marginally lower than in March (8.7%).
House prices fell marginally by -0.2% in April. This was the second successive monthly price fall and the third in the past six months.
The average house price is now £177,648, the Halifax said.
Stephen Noakes, mortgages director at the Halifax, said: “House prices in the three months to April were 2.3% higher than in the three months to January. Annually prices were 8.5% higher in the three months to April than in the same three months last year. However, prices fell marginally during the month representing a second successive monthly decline.
“Although mortgage approvals have now declined for two consecutive months and property transactions fell in March, on an annual basis housing demand still remains strong. Housing demand continues to be supported by an economic recovery that is gathering pace, rising consumer confidence, low interest rates and wage growth finally beginning to outgrow consumer prices. However, with supply of properties being slow to respond to market conditions, stronger demand in the past year has resulted in upward pressure on house prices.”
Nicholas Ayre, managing director of buying agency Home Fusion, said: “With prices levelling out and even tailing off a little in the past month, we could be seeing the first signs of resistance from buyers who are not prepared to pay what sellers are asking. If buyers are being sensible and refusing to pay over the odds because they can’t afford it, then that is a good thing. While interest rates are low at the moment, they won’t always be and working out whether you can afford your mortgage when rates do rise is a reasonable strategy.
“However, this may just be a blip rather than the beginning of a downwards trend in prices. Prices still rose on the quarter and on the year. And while the market may be adjusting, there are pockets of the London housing market where it is still crazy busy while in other parts of the country talk of a bubble is laughable. A national average house price is not at all helpful, as regional variations tend to be significant.
“The Mortgage Market Review is unlikely to be the reason for the slowdown as it has only recently been introduced. What we are seeing is a housing market that is jammed with homeowners refusing to sell up because they are worried about where they are going to live. Not only are transactional costs high – as well as the sticker price, you have stamp duty, various legal costs and stamp duty – there is also the stress and hassle factor. No wonder people are staying put.”
