UK house prices drop for the 2nd consecutive month in April

Posted on May 3, 2024   |  

UK house prices experienced an unexpected decline for the second consecutive month in April, attributed to "affordability pressures" amid elevated mortgage rates.

The average house price in April amounted to £261,962, marking a 0.4% decrease compared to March, which itself saw a 0.2% month-on-month drop.

Contrary to predictions by city forecasters of a 0.2% increase, April witnessed a downturn in prices.

Annual house price growth also slowed to 0.6% in April from the previous month's reading of 1.6%.

House prices are currently around 4% lower than the all-time highs recorded in the summer of 2022, accounting for seasonal variations.

Earlier in the month, five lenders raised fixed mortgage rates by up to 0.4 percentage points in response to economists adjusting their forecasts for the Bank of England's interest rate cuts.