The Office for National Statistics (ONS) has reported that UK average house prices increased by 8.9% over the year to April 2021, down from 9.9% in March 2021.

This means that UK house price growth slowed for the first time since July 2020.

Average house prices increased over the year in England to £268,000 (8.9%), in Wales to £185,000 (15.6%), in Scotland to £161,000 (6.3%) and in Northern Ireland to £149,000 (6.0%).

London continues to be the region with the lowest annual growth (3.3%) for the fifth consecutive month.

Rob Barnard, director of intermediaries at Masthaven Bank, said: “On first glance, today’s data looks promising – house prices are increasing dramatically year on year, suggesting a buoyant market. However, the reality is that the figures mask an underlying fragility. Government initiatives, such has the Stamp Duty holiday, have been effective at fuelling much of the activity in the property market despite intermittent lockdowns and economic uncertainty. But June 30th is nearly upon us and the removal of such government stimulus could result in market volatility.

“When the tax holiday comes to an end, prospective homeowners will require guidance and support more than ever. Some borrowers will have been financially impacted by the pandemic, while others will feel locked out of the market due to inflated house prices. The specialist lending market will play an important role in making sure these borrowers are not left behind.

“Specialist lenders must continue to develop flexible and tailored products and work with brokers to make sure these borrowers who do not fit the traditional mould have a good understanding of the solutions available to meet their unique circumstances.”