National house prices fell 0.2% in the three months to April, and by 0.1% in that month alone, according to the Halifax House Price Index.
Annually, house prices continued to rise by 3.8%, but according to Martin Ellis, Halifax housing economist, house prices have stagnated over the past three months, leading to the first quarterly decline since November 2012.
“Housing demand appears to have been curbed in recent months due to a deterioration in housing affordability driven by the sustained period of rapid house price growth during 2014-16,” he said.
“Signs of a decline in the pace of job creation, and the beginnings of a squeeze on households’ finances as a result of increasing inflation, may also be constraining the demand for homes.
“A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale, should nonetheless help continue to underpin house prices over the coming months.”
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