Annual UK house price growth hits 10-year low; China’s imports in surprise tumble – business live

Introduction: Halifax shows annual house price growth fizzling out

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Annual house price inflation in the UK has slowed to its lowest in a decade, as the market stabilises after last autumn’s turmoil.

Lender Halifax has just reported that prices in April were 0.1% higher than a year ago – a slowdown on the 1.6% annual house price growth recorded in March.

That’s the weakest increase since December 2012, as this chart shows:

A chart of annual UK house price inflation — Photograph: Refinitiv/Halifax

On a monthly basis, the average house price decreased by 0.3% in April, wiping out a little of the 0.8% rise reported in March.

This knocked the price of the average property down to £286,896, from £287,891 in March.

UK house price index to April 2023 — Photograph: Halifax

Average prices are still around £28,000 higher than two years ago, but are around £7,000 below their peak set last summer – before rising mortgage costs and the turmoil caused by the mini-budget.

UK house prices to April 2023 — Photograph: Halifax

House price movements over recent months have largely mirrored the short-term volatility seen in borrowing costs, says Kim Kinnaird, director of Halifax Mortgages, who explains:

The sharp fall in prices we saw at the end of last year after September’s ‘mini-budget’ preceded something of a rebound in the first quarter of this year as economic conditions improved.

The economy has proven to be resilient, with a robust labour market and consumer price inflation predicted to decelerate sharply in the coming months. Mortgage rates are now stabilising, and though they remain well above the average of recent years, this gives important certainty to would-be buyers.

While the housing market as a whole remains subdued, the number of properties for sale is also slowly increasing, as sellers adapt to market conditions.

Last week, rival lender Nationwide reported that the average house price rose by 0.5% in April after seven months of declines.

Halifax’s data comes two days before the Bank of England is expected to raise UK interest rates for the 12th time in a row, to 4.5%, as it battles inflation.

Higher interest payments are already hitting households, with an estimated 700,000 UK households missed or defaulted on a rent or mortgage payment last month, data from Which? shows.