UK House Prices Fall 0.6% Amid Tax Changes

UK house prices fell by 0.6% in April, marking the sharpest monthly decline since August 2023 and surpassing economists' expectations. The drop is largely attributed to changes in stamp duty thresholds implemented at the start of the month, prompting many buyers to complete purchases in March to avoid higher taxes. As a result, the annual rate of house price growth slowed to 3.4% from 3.9% in March. Economists, including Nationwide's chief economist Robert Gardner, expect the housing market to remain subdued in the near term but anticipate activity to recover as summer progresses. Despite ongoing economic uncertainties, factors such as low unemployment, rising real wages, and the potential for lower borrowing costs are seen as supportive for homebuyers. The Bank of England is also expected to consider interest rate cuts in the coming months, which may further stabilize the market.