That’s according to Nationwide, which said that the annual rate of house price growth also slowed to 3.4% this month, from 3.9% in March.
It noted that the slowdown was likely due to the end of the Stamp Duty tax break, which had led many buyers to push forward their purchases in March to beat the deadline.
Robert Gardner, Nationwide’s chief economist, said: “The softening in house price growth was to be expected, given the changes to stamp duty at the start of the month. Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations.
“The market is likely to remain a little soft in the coming months, following the pattern typically observed following the end of stamp duty holidays. Nevertheless, activity is likely to pick up steadily as summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.
Alice Haine, personal finance analyst at Best Invest, added: “The softer market reflects the increase in stamp duty bills from April 1, with some buyers reconsidering their options in the face of higher purchase costs, along with the traditional Spring surge in listings, which can help to keep a lid on prices.
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“A spike in the number of homes for sale is typical for this time of year as buyers look to take advantage of improving temperatures and longer daylight hours to showcase their interiors and gardens. While more homes for sale gives buyers greater choice, the uptick in listings is not being met by a similar uplift in demand.
“This is a result of the seasonal slowdown that typically occurs over the Easter period, when buying activity gets put on the backburner as people head off on holiday, and buyers erring on the side of caution in the face of fresh affordability challenges.”
