UK house prices have fallen month-on-month - but Britons are warned of an annual increase

Halifax said that the average property value decreased by 1 per cent month-on-month, following a rise of 0.3 per cent in February.

However, house prices saw an increase on an annual basis, with property prices increasing by 0.3 per cent annually in March. However, this had slowed from an increase of 1.6 per cent in February.

This suggests that Britons were better off buying homes in March 2024 than one month prior.

However, Britons buying in 2024 will still find that the average home is more expensive than in 2023.

Sellers are benefiting from property prices being more expensive on an annual basis, however, they would have fetched less for their home in March than if they sold in February.

Director of Halifax Mortgages Kim Kinnaird commented on the latest house price data.

She said: "Compared to last month, the price of a UK property fell 1 per cent or £2,908 in cash terms, with the average property now costing £288,430.

"That a monthly fall should occur following five consecutive months of growth is not entirely unexpected, particularly in view of the reset the market has been going through since interest rates began to rise sharply in 2022.

"Despite this, house prices have shown surprising resilience in the face of significantly higher borrowing costs.

"Affordability constraints continue to be a challenge for prospective buyers while existing homeowners on cheaper fixed-term deals are yet to feel the full effect of higher interest rates.

"This means the housing market is still to fully adjust, with sellers likely to be pricing their properties accordingly.”

Britons looking to buy will find that some parts of the UK have had a major average house price increase, while other regions have seen house prices fall. Northern Ireland saw an increase of 4.3 per cent.

Regional annual change figures (based on the most recent three months of approved mortgage transaction data)

• East Midlands £239,954, 0.1 per cent
• Eastern England, £330,627 minus 0.9 per cent
• London, £539,917, 0.4 per cent
• North East, £172,335, 2.5 per cent
• North West, £232,315, 3.7 per cent
• Northern Ireland, £194,743, 4.3 per cent
• Scotland, £204,835, 2.1 per cent
• South East, £385,751, minus 0.7 per cent
• South West, £302,033, minus 0.2 per cent
• West Midlands, £254,116, 1.8 per cent
• Yorkshire and the Humber, £207,232, 1.7 per cent

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But Britons buying won't be forking out too much more for a UK property than in previous years.

The expert said: "Taking a slightly longer-term view, prices haven’t changed much over the past couple of years, moving in a narrow range since the spring of 2022, and are still almost £50,000 above pre-pandemic levels.

"Looking ahead, that trend is likely to continue. Underlying demand is positive, as greater numbers of people buy homes, demonstrated by recent rises in mortgage approvals across the industry and underpinned by a strong labour market."

In other property news, the most affordable place to buy in the UK has been shared as house prices rise.