House prices remain flat in April

House prices were broadly flat in April, declining by just 0.1%, according to the latest Halifax House Price Index. This followed a 1.0% increase in March.

House prices in April were 6.6% higher on an annual basis. This was the largest increase in the annual rate of change - measured by the average for the latest three months against the same period a year earlier – since October 2007 (8.9%).

Prices are 8.7% above their April 2009 trough; an increase in the average price of £13,539 over this period. This rise follows a fall between August 2007 and April 2009 of 23%. The average house price is now £168,202; 16% below its August 2007 peak.

Supply and demand imbalance is easing. The improvement in house prices since spring 2009 has encouraged more people to try to sell their property. New sales instructions increased again in March, helping to push up the stock of unsold properties to the highest since April 2009. The ratio of completed sales to stock fell for the fourth successive month in March - to the lowest since July 2009 - indicating a loosening in market conditions. (Source: RICS monthly survey, March 2010.)

Commenting, Martin Ellis, housing economist, said: "House prices were broadly flat in April, declining by just 0.1%. This followed a 1.0% increase in March.

The underlying rate of house price growth has slowed in recent months following the relatively sharp rebound, albeit from a low base, in the second half of 2009. The improvement in house prices since spring 2009 has encouraged more people to try to sell their property. New sales instructions have risen, helping to push up the stock of unsold properties in recent months. As a result, the imbalance between supply and demand is easing somewhat. Our view is that house prices will be flat during 2010 as a whole."