Propertymark bats off surprisingly downbeat housing index

Propertymark has batted away any possible market pessimism as a result of a downbeat price index result from the Halifax 

Just before the weekend the lender reported that UK house prices grew in March on a quarterly basis, by 2.0%, with annual growth slowing to 0.3%, from 1.6% in February. 

But compared to a month ago, Halifax admitted the price of a UK property fell 1.0% or £2,908 in cash terms, with the average property now costing £288,430. 

Despite the mixed messages, Propertymark chief executive Nathan Emerson issued an optimistic response, saying: “Spring tends to be one of the busiest times of the year for the housing market, and with inflation falling and interest rates remaining static, homebuyers have adjusted to the latest market conditions. 

“This should result in a surge of new buyers, sellers, and properties coming to the market as the year progresses. 

“This was reflected in Propertymark’s latest Housing Insight Report, which found that there has been an 18 per cent increase in the number of new properties coming to the market. However if inflation continues to drop to pre-pandemic levels, Propertymark is hopeful that interest rates will also start to fall, and the whirlwind of economic turbulence will finally settle for everyone once again.”

The Halifax reported that Northern Ireland remains strongest performing nation or region in the UK – with house prices up by 4.3% on an annual basis. Properties in Northern Ireland now cost an average of £194,743, which is £7,972 more than a year ago. 

In Wales annual property price growth slowed to 1.9% in March, from 3.9% in February, with the average home now costing £219,213. Meanwhile Scottish house prices rose 2.1% year-on-year to stand at £204,835. 

Something of north/south divide exists in England, where the North West saw the strongest growth, up by 3.7% on an annual basis to £232,315. 

Properties in Eastern England recorded the biggest decline of 0.9%, with homes selling for an average of £330,627, a drop of £2,878 over the last year. 

London continues to have the highest average house price in the UK, at £539,917. Prices in the capital have increased by 0.4% over the last year.