Annual house price growth has fallen to its lowest rate since March 2013, new figures show.
According to the latest Halifax House Price Index, annual house price growth rose 3.8% in March, down from 5.1% in February.
The annual rate is less than half the 10.0% peak reached in March last year.
On a monthly basis there was no change. The average price of a property is now £219,755.
Martin Ellis, Halifax housing economist, said: “House prices in the three months to March were 0.1% higher than in the previous quarter, the lowest quarterly rate of change since October 2016. The annual rate of growth fell further to 3.8% from February’s 5.1%, the lowest rate since May 2013.
“The annual rate of house price growth has more than halved over the past 12 months. A lengthy period of rapid house price growth has made it increasingly difficult for many to purchase a home as income growth has failed to keep up, which appears to have curbed housing demand.
“Nonetheless, the supply of both new homes and existing properties available for sale remains low. This, together with historically very low mortgage rates, is likely to support house price levels over the coming months.”
Halifax expects annual house price growth to slow between 1-4% by the end of the year.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Although this survey follows the pattern of other recent reports into the health of the housing market, it underlines the issue that house prices should still be rising more rapidly bearing in mind the low volume of transactions and shortage of stock. In other words, it is not very good news.
“However, what we have found on the ground is that there is more of a general acceptance that prices are flattening and if people want to move, then Easter is the time to get on with it and be more realistic about making and accepting offers.”
The figures come after Nationwide reported that house prices fell 0.3% month-on-month in March –the first monthly dip since June 2015.
Howard Archer, chief economist at IHS Global Insight, said: “March’s weakened house price data comes as housing market activity shows signs of faltering after picking up modestly over the final months of 2016 and start of 2017.
“We suspect housing market activity and prices will come under increasing pressure over the coming months from weakening fundamentals.”
