Source: Sharecast
According to the Nationwide’s latest house price index, prices fell 0.6% month-on-month. Analysts had been expecting no change, in line with March’s 0.0% print.
On an annual basis, growth slowed to 3.4% from 3.9% in March. Consensus had been for a 4.1% rise.
Nationwide attributed the weaker figures to the changes to stamp duty thresholds, which came into effect at the start of the month.
Robert Gardner, Nationwide’s chief economist, said: “The softening in house price growth was to be expected, given the changes to stamp duty.
“Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations.”
Looking forward, Gardner warned the market was likely to remain “a little soft” for a few months, as the after-effects of the stamp duty rush continued to be felt.
But he continued: “Nevertheless, activity is likely to pick up steadily as summer progresses, despite wide economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.”
Jonathan Handford, managing director of estate agent Fine & Country, said: “[April’s] dip coincides with a broader easing of economic pressures.
“There is growing speculation that interest rate cuts could come as soon as May. That outlook is being shaped not only by domestic inflation data but also by global headwinds, including the potential disruption caused by changes to global trade.
"However, this could also prompt UK policymakers to act faster to support growth and ease lending conditions.”