House prices in the UK increased by 3.2% in the 12 months to April, Halifax has revealed.

The bank’s latest house price index showed that the average property price in the UK stood at £297,781 last month.

This is a month-on-month increase of 0.3%, following a decline of 0.5% in March.

Halifax stated that in the six months to April, house prices remained "remarkably stable", having dropped by just £48 in this period.

Head of mortgages at Halifax, Amanda Bryden, said: "UK house prices rose by 0.3% in March, an increase of just under £900. The annual growth rate also ticked up to 3.2%, reaching its highest level so far this year.

"We know the stamp duty changes prompted a surge in transactions in the early part of this year, as buyers rushed to beat the tax-rise deadline. However, this didn't lead to a significant increase in property prices, with the last six months characterised by a stability in prices rarely seen since the pandemic. While the market has cooled slightly since this rush, buyer activity remains strong in comparison to recent years.

"Mortgage rates have continued to fall, with most lenders now offering rates below 4%. Coupled with positive earnings growth that has outpaced broader inflation, these factors have helped to steadily improve affordability for many buyers."

Northern Ireland continued to be the country to post the highest level of annual property price inflation in the UK, increasing by 8.1% to £208,220 in March.

Wales (£229,079) and Scotland (£214,011) also saw prices increases on 4.6% and 4.1% in the year to March.

In England, the North West was the best performing region with house prices jumping by 4.1% annually to £240,975.

London continued to be the most expensive region to buy a property in the UK, with house prices increasing by 1.3% in the year to March to £543,346.

Chief executive officer at Propertymark, Nathan Emerson, concluded: "This is a sign of sustained confidence in the UK’s housing market following a recent stamp duty surge in homebuying, and it should give those sellers hoping to take advantage of the traditionally busier spring and summer months motivation to move up the housing ladder.

"There has been recent data showing confidence in the mortgage market is fragile, and other reports suggesting that mortgage rates are at their lowest level since 2022. Hopefully, the Bank of England can provide further clarity to aspiring homeowners when they meet later today, and if the conditions are right to reduce interest rates, then this should make mortgages more affordable."

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