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Halifax April 2024 House Price Index: "The housing market is less finding its feet than being knocked off them"

ended 07. May 2024

Average house prices rose by +0.1% in April on a monthly basis, after a fall of
-0.9% in March, according to the Halifax House Price Index published this morning. Property prices grew by +1.1% annually vs +0.4% last month according to the lender. Newspage asked a selection of property experts and brokers for their views, below.

7 responses from the Newspage community

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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The housing market is less finding its feet than being knocked off them. It came out of its corner swinging in early 2024 but has since been hit by a stinging haymaker of mortgage hikes. Despite ample listings and steady traffic at viewings, prospective buyers are holding back, waiting for more favourable conditions, paralysed by spiralling mortgage costs. The crisis of confidence among first-time buyers and home movers alike will only be solved by a now overdue base rate cut, which could be the lifeline needed to revive and strengthen the faltering market.
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Harps Garcha
Director at Brooklyns Financial
To say affordability is a significant challenge is an understatement. 2024 kicked off on an extremely positive note, however the slow but relentless rise in mortgage rates from the tail end of January has seen confidence really start to dwindle. First-time buyers and homeowners were raring to go at the start of the year, full of confidence, but now they are feeling the pinch as mortgage costs shoot up, with many having to put their dreams of buying or moving hold. Those still in the hunt for their dream home are struggling with the ongoing lack of housing stock, which is at least preventing property values from taking a nosedive. The Bank of England needs to step up and cut the base rate to give the market the boost it desperately needs.
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Dariusz Karpowicz
Director at Albion Financial Advice
To predict modest growth in 2024 in current market conditions is slightly bullish. Rising mortgage rates are undoubtedly tightening the screws on both market sentiment and demand, testing an already strained UK housing market. From what we're seeing, there's a slight downturn in property prices, with Nationwide reporting a contraction last month. This shift might suggest that buyers have gained some leverage in recent months. However, the full impact and whether sellers are adjusting their price expectations realistically is still mixed across regions. To rekindle confidence and boost transactions, more favourable lending conditions, and perhaps even Government incentives, are needed. Currently, the market is navigating a phase of caution, with no immediate positive signals on the horizon.
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James Mason
Owner at Hawksman Real Estate
Activity levels and demand are definitely on the up as the Halifax observes. They're through the roof in Surrey given the sheer amount of pent-up demand in the market at present but many buyers are hesitating when it comes to that final step of committing and seeing through the purchase. As soon as lenders start to drop mortgage rates, we will see a stampede and I suspect house prices will start to rise again so the modest growth prediction may not be far off the mark. All eyes are on the Bank of England but that first cut may not come quite yet.
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Graham Cox
Director at Bridging Hub
We're finding many homeowners want to move, but are waiting for mortgage rates to fall. At the moment, they're going the other way, though it's surely only a matter of time before the Bank of England cuts the base rate. First-time buyers of course, face the triple-whammy of high house prices, large deposit requirements, and high mortgage rates. Until conditions change and they return to the market in greater numbers, I expect house prices to slide.
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Alastair Hoyne
CEO, Finanze Capital at Finanze Capital
There's no need to hit the panic button just yet. While the 5-year SONIA rate has inched up by approximately 25bps over the past month, creating a shift in borrowing costs, experts predict a more measured approach to future Bank of England base rate adjustments. Interestingly, despite last year's significant interest rate hikes, sellers held their ground against pressure for price reductions. This resilience led to a realisation: the market wasn't budging, prompting investors to re-enter the fray. Now, the spotlight shines on strategies to enhance property value, with tactics like BRRR (Buy, Refurbish, Rent & Refinance) taking centre stage. Moreover, innovative opportunities abound, including our own title split product and savvy manoeuvres like snapping up short-lease properties and negotiating extensions. The game is evolving, and it's all about seizing these value-adding chances!
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Ross McMillan
Owner/Mortgage Advisor at Blue Fish Mortgage Solutions
Considering the interest rate pressures and volatility over the last couple of years, it remains a modern day miracle that the Scottish property market continues to show no sustained signs of any softening in prices. The supply continues to be limited, while demand, especially from first-time buyers, remains consistently strong. Consequently, bidding wars and closing dates remain common, with the majority of properties fetching prices 10-15% above their home report values. This trend is prevalent across most areas, with hotspots like Glasgow and Edinburgh experiencing even steeper hikes, sometimes up to 30% above mortgage valuations. While mid-range modern homes may occasionally experience slower movement, accurately priced properties are still selling well. Despite indications suggesting that interest rates won't drop as swiftly as had been anticipated earlier in the year, it appears that 2024 will yet again be another prosperous year for the Scottish housing market.