UK house price annual growth slowed again to 3% in April to £259,700 for an average home, data from Zoopla showed, but it added that the “worst of the monthly house price falls is now behind us”.
Last month prices rose at 4.1% on an annual basis, while a year ago homebuying inflation was 9.3%, the property website’s latest House Price Index revealed.
Zoopla said that “prices are continuing to register modest quarter-on-quarter price falls of up to 0.7% across all regions and countries of the UK."
“There are early signs that the level of monthly price reductions are now reducing and the main adjustment in pricing is behind us.”
The report added that prices are likely to register low negative annual growth by the summer and end the year falling by 1%, in what it calls “a soft landing for the market”.
It said demand for homes hit their highest level this year after the Easter break and is 14% higher than 2019 levels but still 42% down on a year ago — as the market surged in 2022 on the back of a lack of supply, the post-pandemic ‘race for space and lower mortgage rates at the start of the year.
The survey showed first-time buyers are increasingly favouring smaller properties as they adjust their expectations amid higher mortgage rates and look to get away from rapidly rising rents.