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Annual UK house price growth unchanged at 3.8%

Staff Writer |
House prices in the last three months (February-April) were 0.2% lower than in the previous three months (November-January).

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This was the first quarterly fall since November 2012 (- 0.3%).

Prices in the three months to April were 3.8% higher than in the same three months a year earlier.

This was unchanged from March and is the lowest annual rate since May 2013 (2.6%).

The annual rate is less than half the 10.0% peak reached in March 2016.

House prices fell by 0.1% between March and April.

There has been virtually no change in prices over the past three months.

Confidence in the UK housing market has stabilised following a record decline, according to the latest Halifax Housing Market Confidence Tracker.

The survey, which tracks House Price Optimism (HPO) – consumer sentiment on whether house prices will be higher or lower in a year’s time – has shown a small improvement (+2 points) from a net +42 in October 2016 to +44.

This improvement followed a record fall in October 2016 following the EU referendum result.

Nearly six in 10 (58%) expect the average property price to rise in the next 12 months, compared to just one in 10 (14%) who expect prices to fall.

However, this compares to a record high of 72% who were anticipating price rises in May 2015.

Total UK home sales stabilised in early 2017. Sales in March were very similar to the levels recorded in both January and February, at 102,810.

Overall, sales in the first three months were 6% higher than in the final quarter of 2016.

The level of sales in the first three months is closely in line with the monthly average during 2014-2016.

The number of properties coming on to the market fell for the 13th month in a row in March.

This contributed to a decline in the average stock levels on estate agents’ books, taking them to a new historic low.

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