UK Halifax House Prices Fall

(RTTNews) - UK house prices declined in March as the Iran conflict pushed up inflation expectations and dampened hopes of interest rate reductions, data from the mortgage lender Halifax showed Wednesday.

House prices decreased 0.5 percent on a monthly basis in March, reversing February's 0.3 percent increase. The average property price was GBP 299,677.

On a yearly basis, house price growth eased to 0.8 percent in March from 1.2 percent in February.

The slowdown in the housing market reflects the widespread uncertainty regarding the conflict in the Middle East.

"Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year," Halifax Head of Mortgages Amanda Bryden said.

Bryden added that the effect on house prices will largely depend on how long-lasting these pressures prove to be and the wider implications for the economy and unemployment.

However, Halifax expects house prices to prove resilient even if uncertainty weighs on market activity in the near term.

Last month, the Bank of England maintained its interest rate at 3.75 percent, which was the lowest since June 2023. Policymakers raised market expectations for a rate hike as they said the committee stands ready to act as necessary to bring inflation back on track.