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House price growth down to 3.5%

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Annual house price growth stood at 3.5% in the 12 months to April 2023, falling from 4.1% the month before, the ONS House Price Index.

Meanwhile prices increased by 0.4% between March and April.

The typical price is now £286,000, £9,000 higher year-on-year but £7,000 lower than in September.

Emma Cox, MD of Real Estate at Shawbrook, said: “While landlords may feel nervous, astute professional investors can seize opportunities in this situation.

“The decline in house prices presents a chance to diversify portfolios and strategically invest in properties.

“As a result, this influx of investment helps alleviate the shortage of high-quality rental properties, meeting the demand from renters who currently have limited options.”

Jonathan Hopper, chief executive of Garrington Property Finders, said:

“The storm clouds hovering over the property market are dark and the silver lining is paper thin.

“Average house prices edged up 0.4% on a seasonally adjusted basis in April. But this modest progress was more than cancelled out by the 0.7% fall recorded in March.

“More importantly, the annual pace of growth is dropping steadily as widespread price cutting on the property front line reverses the rapid increases seen before last year’s disastrous mini-Budget.

“Prices are still on course for a soft landing rather than a crash. But Britain’s stubborn inflation problem means we’re likely to face further turbulence during the descent.

“The Bank of England’s slowness to tackle inflation means it is badly behind the curve and interest rates are now set to go even higher and stay high for longer.”

He added: “For tens of thousands of would-be first-time buyers, the prospect of home ownership slips further out of reach each time mortgage rates go up.

“But higher borrowing costs have a chilling effect on the wider market too, and we’re likely to see fewer homes sell over the coming months. Only at the top end of the market, where buyers tend to have a large chunk of equity under their belts and are less reliant on borrowing, are things flowing relatively smoothly.

“Well-capitalised buyers who have their finances in place are finding their ‘proceedability’ to be a hugely tradeable asset, which they can use to secure significant discounts off the asking price.”

Conor Murphy, chief and founder, Smartr365 and Capricorn Financial Consultancy, was more positive about the state of the market.

He said: “Today’s data demonstrates that market conditions remain heathy. Inflation is expected to fall throughout the year, and economists predict just two more interest rate hikes in 2023, which should encourage some calm throughout the second half of the year and give first-time buyers a greater opportunity to make their way onto the housing ladder. “

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