Average price dips back below £300,000 after higher energy costs have knock-on effect on mortgage rates
UK house prices fell in March, as the housing market lost momentum amid uncertainty over the conflict in the Middle East and the impact on the economy and interest rates.
Figures from Halifax, which is part of Lloyds – Britain’s biggest mortgage lender – showed property prices dipped by 0.5% in March compared with a month earlier. As a result, the average price of a home slipped back below £300,000, to £299,677, after first crossing the milestone in January.
The pace of annual property price growth also eased to 0.8%, down from 1.2% the previous month, suggesting a slowdown in the housing market at the start of the traditional spring selling season.
Halifax said uncertainty over the conflict in the Middle East had dampened the “initial momentum in the market seen at the start of the year”. Concerns about higher energy prices have pushed up inflation expectations, which has in turn led to a rise in mortgage rates.
