House prices "plateau" due to high mortgage rates

Last updated on 9 May 2024 by Claire Flynn

Have house prices plateaued?

Halifax has said that house prices have remained flat in April with no signs of the usual "spring bounce" - the bank has blamed high mortgage rates for the lack of growth.

Zoopla's April House Price Index also reported that house prices had remained relatively stable month-on-month and year-on-year. They reported the average property price to be £264,500 in March, just a 0.2% decrease on the previous year and 0.1% increase on February.

However, Zoopla did point to improving market activity overall, with more sales and mortgage approvals. They also mentioned that the North of England, West Midlands, Wales, Scotland and Northern Ireland had all seen a return to annual house price growth.

Is 2024 a good time to buy a property?

Whether this year is a good time to buy a property really depends on your personal and financial circumstances. Reports of house prices stagnating or even falling might seem like a positive to buyers, particularly those purchasing a house for the first time.

But it's important to remember that mortgage rates remain higher than a few years ago, which is likely to impact your affordability.

If you do decide to buy a property, make sure to:

• Work out a realistic budget of what you could afford to spend on a property, and consider what your monthly repayments will look like. Our mortgage calculator might help with this.

• Keep an eye on property prices in the area you want to buy in - house price trends can vary significantly in different parts of the country, so looking at a UK average may not be that helpful.

• Speak to a whole-of-market mortgage adviser, who can compare deals from lots of lenders and advise you on affordability, to make sure you get the best mortgage for you.

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