House prices fall but confidence in market is returning

Halifax said the drop of 0.6 per cent was the biggest since March 2018, as market activity was held “almost at a complete standstill”.

Across the UK, the average house price stood at £238,511 in April.

However, despite prices having fallen, the average UK house price in April was still 2.7 per cent higher than a year earlier.

Social distancing measures due to the coronavirus pandemic mean much activity, including physical viewings, valuations and house moves, has had to be put on hold for now. But house hunters can still do “virtual” viewings online and put in offers on properties if they want.

Halifax managing director Russell Galley said: “It will not be until after lockdown restrictions are eased that we will get a sense of the new temporary normal conditions for the housing market.

“More immediately, we are likely to see some considerable movement in activity levels as buyers and sellers seek to kick-start previously agreed transactions which are likely to have stalled or been delayed.

“The future remains uncertain and based on our current forecasting we expect short-term headwinds to house prices, although we maintain our underlying confidence in the health of the housing market in the longer term.”

Commercial director of Pontefract-based outsourced sales progression company ASAP, Tony Hill, said the initial shock had now given over to the realisation “that we are all in this together” and that most people are now continuing to progress their transactions.

“The appetite for buying and selling is still very much there,” he said. “In the last week, clients have seen the media talk about the relaxation of guidelines and we are starting to see more enquiries again. Credit it pretty cheap, and investors are starting to look around again.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “From the point of view of lenders, they remain open for business.”

He added: “For those who wish to remortgage in particular, there are plenty of attractive deals to tempt them.”