House prices steady last month – but drop in activity is expected

HOUSE PRICES were little changed in March from a record high set the previous month, according to an index.

Across the UK, the average house price in March was £240,384, Halifax said.

Average house prices held steady, changing little from a record high of £240,461 in February. Property values in March were three per cent higher on an annual basis.

Russell Galley, managing director, Halifax, said: “The UK housing market began last month with similar trends to previous months, as key market indicators showed a sustained level of buyer and seller activity.

“Overall average house prices in the month were little changed from February’s record high, while annual growth nudged up to three per cent. These factors all underlined a positive trajectory and increased momentum in the early part of the year, with confidence rising as political and economic uncertainty eased.”

But Mr Galley said it was clear the month ended in “very different territory” as a result of the coronavirus pandemic. He said: “On a practical level, most market activity has been paused, with the public rightly following advice to stay at home, and estate agencies, surveyors and conveyancers temporarily closing as a result.

“With viewings cancelled and movers being encouraged to put transactions on hold, activity will inevitably fall sharply in the coming months.”

He said that with less data available, it will also become harder to calculate average house prices in the coming months. Howard Archer, chief economic adviser at EY ITEM Club said March was the first time in five months that house prices had failed to increase.