UK house prices dipped in April, but the market is more stable, according to the latest Halifax House Price Index.

The average house price decreased by -0.3% in April (following +0.8% rise in March) and the annual rate of house price growth slowed to +0.1% (vs +1.6% in March).

The typical UK property now costs £286,896 (compared to £287,891 in March)

The latest figures from Halifax indicate that the first-time buyer market remains resilient in the face of rising rental costs. It also reveals that house prices in the south of England are under the greatest pressure.

Halifax Mortgages director Kim Kinnaird points out that a typical property now costs £286,896, which is around £7,000 below last summer’s peak, though still some £28,000 higher than two years ago.

“House price movements over recent months have largely mirrored the short-term volatility seen in borrowing costs. The sharp fall in prices we saw at the end of last year after September’s ‘mini-budget’ preceded something of a rebound in the first quarter of this year as economic conditions improved, Kinnaird adds.

IMMO co-founder Avinav Nigam says the relative stabilisation of borrowing costs and inflation brings some relief to buyers, with house prices fluctuating slightly month-on-month.

“While this is good news for first-time buyers, the UK still sees a vast population of renters with few adequate housing options, and no viable path to home ownership”.

Nigam adds: ‘In what is clearly a stable, but inaccessible housing market, there’s a growing need for professional investors to inject capital into the market, create new rental homes, and improve the energy performance of existing housing.’

Together head of personal finance intermediary James Briggs says: “After months of subdued activity, house prices stalled in April, falling 0.3% over the past month.

“With lenders adjusting their offers ahead of the Bank of England’s interest rate announcement this Thursday, consumer confidence appears to be remaining weak. However, as we delve further into spring, home renovations are beginning their popular, annual revival so borrowers will be eagerly assessing their options”.

He adds: “For first-time buyer’s there are a range of schemes on offer, such as shared ownership or right to buy mortgages to support that first step onto the property ladder.

“Assessing all options including specialist brokers and lenders, who take into account your personal and financial circumstance whilst often being more flexible can help borrowers secure the finance needed to achieve their home ambitions.”