The latest Halifax House Price Index released this morning revealed a monthly change of -1% in March. Kate Steere, property expert at personal finance comparison site finder.com gives her thoughts:

“Today’s figures show that the events from last year are still weighing heavily on prospective buyers’ minds. While lenders have cut mortgage rates and wage growth has outstripped inflation, the turmoil from the past 12 months is still casting a dark shadow on demand. The Bank of England’s decision to hold rates has dampened UK house price recovery. Half of experts believe that the Bank will wait until June 2024 before cutting rates, so as a result we’re likely to see only a subdued recovery in house prices over the next couple of months. While it’s too early to say if there’s going to be a traditional post-Easter bounce for family houses, we have noticed flats are performing better than in a long time with an increase in first-time buyer activity, which is crucial for a healthy market.”

“This is mostly down to the generosity of the Bank of Mum and Dad, as this rebound in first-time buyer activity would not have been likely without parental assistance, particularly in London and the southeast.

However, not everyone has help with their deposit, which is why lender innovation, such as the recent launch of the 99 per cent mortgage by Accord, is so crucial in getting the market moving.”

Source: Property Notify