House prices recover with 1.1% growth in March: Halifax

House prices in the three months to April were 5.0% higher than in the same three months a year earlier and were 4.2% higher than in the preceding three months.

In its index, Halifax noted that the "sharp" 5% rise in April’s annual change figure comes against the backdrop of a particularly low growth rate over the corresponding period in 2018, impacting year-on-year comparisons.

Halifax added that this also factored in a notably high growth figure recorded in February, driven by a higher volume of London sales and more expensive new build properties.

Russell Galley, managing director of Halifax, said: “The average UK house price now stands at £236,619 following a 1.1% monthly rise in April, as demand and supply of housing remained subdued for another month.

“The index has seen a weaker pace of growth over the last three years, which is consistent with the easing of transactions volumes and housing market activity reflected in RICS, Bank of England and HMRC figures.

“Looking further back, this April also marks 10 years since the lowest point of the Halifax house price index following the financial crash in 2008. Over the past decade annual house price growth has seen the average price increase by £81,956, or an average rise of 4.3% each year.”

Lucy Pendleton, founder and director of James Pendleton estate agents, commented: “The blistering volatility of this index has returned as the Halifax house price weather vane spins itself into a frenzy once more.

“The index has already come under scrutiny this year after months of erratic monthly growth figures. These can be more sprightly than the smoothed annual and quarterly numbers, but even so, they’ve been turning heads with the extremes with which they have been moving.

“This time it’s the turn of quarterly and annual growth figures, which have leapt up. By this measure for April, the housing market is still comfortably making money for homeowners in real terms.

“One explanation for ricocheting growth figures like this is persistently low stock levels. In sought after areas, this can lead to demand being supercharged one minute and gone the next, with price rises coming in waves as brief competitions for limited numbers of homes come and go. Even so, the Halifax index’s behaviour so far in 2019 has been unusual to say the least.”