UK house prices steady in April as higher mortgage rates bite

First-time buyers targeting smaller properties, with flats closing ‘growth gap’ on houses, says Halifax

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House prices in the UK were steady in April after falling in March, as higher mortgage rates prompt first-time buyers to go for smaller properties, according to the mortgage lender Halifax.

The price of a typical home rose by less than £200 last month to £288,949, a 0.1% monthly gain, compared with a 0.9% drop in March, which was the first decline in six months. On an annual basis, prices rose 1.1% in April, up from March’s rate of 0.4%, largely because there was weaker price growth this time last year, Halifax said.