The latest data from the Halifax House Price Index shows that the UK housing market continues to exhibit its strength and resilience, with a modest rise in average house prices of 0.8% in March, following on from a 1.2% increase in February. The average cost of a UK property now stands at £287,880, compared to £285,660 in February.

Kim Kinnaird, director at Halifax Mortgages, stated that "The UK housing market continues to show resilience following the sharp downturn at the end of 2022, with average property prices rising again in March (+0.8%). The typical house price is now £287,880, around 2% below the peak reached last August."

Despite the slowdown in the annual rate of house price growth, which has dipped to 1.6% from 2.1% for the previous three consecutive months, the market has seen a partial recovery in activity and transactions. Bank of England data reveals that mortgage approvals have risen for the first time in six months.

Kinnaird explains that "The principal factor behind this improved picture has been an easing of mortgage rates. The sudden spike in borrowing costs that we saw in November and December has now been largely reversed, and while rates remain much higher than the average of the last decade, across the industry a typical 5-year fixed rate deal (75% LTV) is down by more than 100 basis points over the last few months."

In addition, the strong labour market, low unemployment rate of 3.7%, and robust pay growth also support house prices. House prices rose across all nations and regions in March, but annual growth slowed in most areas except Greater London and the North East.

Northern Ireland reported the strongest annual growth of 4.9%, followed by the West Midlands at 3.8%. The latest figures confirm the continuing resilience of the housing market, despite ongoing economic and political uncertainties.