Source: Sharecast
Prices declined by 0.5% on the month following a 0.2% drop in February. On the year, house prices were 2.8% higher in March, unchanged on the previous month.
The average price of a home stood at £296,699, down from £298,274 in February.
Amanda Bryden, head of mortgages at Halifax, said: "House prices rose in January as buyers rushed to beat the March stamp duty deadline. However, with those deals now completing, demand is returning to normal and new applications slowing. Our customers completed more house sales in March than in January and February combined, including the busiest single day on record. Following this burst of activity, house prices, which remain near record highs, unsurprisingly fell back last month.
"Looking ahead, potential buyers still face challenges from the new normal of higher borrowing costs, a limited supply of available properties to choose from, and an uncertain economic outlook.
"However, with further base rate cuts anticipated alongside positive wage growth, mortgage affordability should continue to improve gradually, and therefore we still expect a modest rise in house prices this year."
Ashley Webb, UK economist at Capital Economics, said: "The fall in Halifax house prices in March provides further evidence that the boost from buyers rushing to complete home purchases before the rise in stamp duty on 1st April had already run its course and/or had been offset by the weak economy and the recent rises in mortgage rates.
"Overall, we still think house prices will rise by around 3.5% in the year to Q4 2025 and by 4.5% in the year to Q4 2026. That said, if the increased downside risks to UK GDP growth posed by Trump’s tariffs mean interest rates are cut faster than we expect this year, house price growth could be a bit faster."
