UK house price growth remained broadly stable in March at 2.1%, down slightly from 2.2% in February according to Nationwide's latest data.
It appears the market may have been expecting slower growth as shares in estate agents Foxtons (FOX) rise 2.2% to 83.3p and Countrywide (CWD) gained 6.2% to 105.2p.
Investors should note estate agents have struggled over the last year. Countrywide shed over 30% of its value and Foxtons fell 11.8% over this period, meaning the shares are rising from a low base.
LONDON PRICES FALL
Consumer confidence has remained subdued as inflation continues to outstrip wage growth and squeeze household income.
This is evident in the most expensive region in the UK, London, which is also the weakest performing area. House prices are down 1% year-on-year.
Northern Ireland has experienced the strongest annual rate of growth at 7.9% as prices are 38% below 2007 levels, suggesting buyers are seeking out cheaper areas for their new home.
Nationwide chief economist Robert Gardner expects a 1% uptick for house prices this year, but this depends on broader economic conditions and interest rates.
INTEREST RATES COULD ATTRACT NEW BUYERS
Garrington Property Finders managing director Jonathan Hopper says the prospect of interest rate rises, potentially as early as May, could nudge prospective buyers off the fence.
This is not the only factor in play.
‘The experience of 2017 - especially in prime areas - has forced sellers to radically adjust their price expectations, and the new properties that come onto the market tend to be much more sensibly priced,’ comments Hopper.
For prospective sellers in London, a competitive price is necessary after stamp duty was abolished for first-time buyers buying a home worth up to £300,000.
According to Nationwide, average house prices of over £300,000 in the first quarter of 2018 were only recorded in London and Greater London.
