Overview
- Halifax reported a 0.1% monthly fall in April, taking the average UK house price to £299,313, with annual growth slowing to 0.4% from 0.8% in March.
- Halifax said higher energy costs have lifted inflation expectations, which has led markets to price in steeper borrowing costs for homebuyers.
- The Bank of England kept its key rate at 3.75% at its last meeting, and investors now expect two quarter-point hikes by late 2026, according to Reuters.
- The Bank’s Monetary Policy Committee warned rates could reach 5.25% if oil stays above about $130 a barrel for roughly 18 months.
- Despite the cooler outlook, Halifax called the market resilient as wage growth continues to outpace house-price inflation, even as mortgage quotes rise and some buyers pull back.