UK House Prices Fall For Second Month: Halifax

(RTTNews) - UK house prices dropped for the second straight month in April as geopolitical tensions drive inflation higher and trigger interest rate hike concerns, data published by the mortgage lender Halifax showed Friday.

House prices dropped 0.1 percent on a monthly basis in April but slower than the 0.5 percent decrease in March. Prices were expected to remain flat.

The annual growth in house prices halved to 0.4 percent from 0.8 percent in March. The typical property now costs GBP 299,313.

Halifax Head of Mortgages Amanda Bryden said recent global developments have added a greater degree of uncertainty to the housing market outlook. Bryden noted that higher energy prices have fueled inflation expectations, leading markets to reassess interest rate trajectories.

Despite these headwinds, she observed that the housing market has continued to demonstrate the resilience characteristic of recent years.

Although activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation, said Bryden.

Further, Bryden observed that the majority of existing homeowners are on fixed rate mortgages, meaning they are largely insulated from short term changes in interest rates.

For prospective buyers entering the property market, stable prices offer advantages, though higher mortgage rates continue to challenge affordability, she said.