Although prices increased over the year, it was by a small 0.1% which compared less favourably with the 1.6% annual hike in March.
It means the average UK property is currently £286,896 according to Halifax, which warned house prices in the south of England were under the greatest pressure.
Indeed, it revealed the four regions of southern England had seen average house prices fall over the last year. However, the South East registered the largest dip, falling by 0.6%. The average house price in the region is currently £387,469.
The figures come just after the Bank of England revealed mortgage approvals had increased by 18% in March compared to February.
Kim Kinnaird, director, Halifax Mortgages, said today’s data shows average property prices were largely unchanged from this time last year and she expects prices to fall further this year.
“A typical property now costs £286,896, which is around £7,000 below last summer’s peak, though still some £28,000 higher than two years ago,” she said.
“House price movements over recent months have largely mirrored the short-term volatility seen in borrowing costs.
“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.”
Kinnaird added: “Alongside a market-wide uptick in mortgage approvals, these latest figures may indicate a more steady environment.
“However, cost-of-living concerns remain real for many households, which will likely continue weigh on sentiment and activity.
“Combined with the impact of higher interest rates gradually feeding through to those re-mortgaging their current fixed-rate deals, we should expect some further downward pressure on house prices over the course of this year.”
Good news for first-time buyers?
With house prices dipping, and Halifax predicting further falls, there may be a glimmer of hope for would-be first time buyers.
Alice Haine, personal finance analyst at Bestinvest, said: “Falling prices may be good news for first-time buyers who are flooding the market to escape high rental rates, but they may have been hoping for a sharper drop in values to help them secure a better deal.
“In fact, the UK housing market is probably doing better than expected when you consider the tough market conditions it is up against.”
And Nicky Stevenson, managing director at national estate agent group Fine & Country, said lower pricing may actually reignite the market, particularly at this busy time of year for house sales.
She said: “There are signs that lower prices and better negotiation prospects for buyers is leading to a resurgence in activity, with mortgage approvals rising significantly in March.
“People have accepted higher interest rates as the new normal, and buyers are also greatly benefiting from increasing levels of stock, which gives them much more choice over where they would like to live.”
