The Halifax House Price Index showed that the monthly growth rate was an improvement from the 0.5% fall recorded in March.
On an annual basis, average house prices were 3.2% higher than last year, with a stronger yearly growth rate than the 2.9% inflation seen in March.
Halifax said average house prices had remained stable over the last six months, only falling by £48 over the period.
Growth in Northern Ireland, Scotland and Wales outpaced that in English regions, with Northern Ireland seeing the largest rise of 8.1% year-on-year to £208,220.
In Wales, house prices were 4.7% higher than last year, averaging £229,079 in April, while Scotland recorded a 4.6% annual increase to £214,011.
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Within England, the North West had the strongest house price growth, up 4.1% annually to £240,975.
London recorded an increase of just 1.3% compared to last year, remaining the most expensive property market with average house prices of £543,346.
The South West was the English region with the slowest rate of annual house price growth at 0.9% to an average of £304,451.
Amanda Bryden, head of mortgages at Halifax, said: “UK house prices rose by +0.3% in March, an increase of just under £900. The annual growth rate also ticked up to +3.2%, reaching its highest level so far this year. The typical UK property is now valued at £297,781.
“We know the stamp duty changes prompted a surge in transactions in the early part of this year, as buyers rushed to beat the tax-rise deadline. However, this didn’t lead to a significant increase in property prices, with the last six months characterised by a stability in prices rarely seen since the pandemic. While the market has cooled slightly since this rush, buyer activity remains strong in comparison to recent years.
“Mortgage rates have continued to fall, with most lenders now offering rates below 4%. Coupled with positive earnings growth that has outpaced broader inflation, these factors have helped to steadily improve affordability for many buyers.
“Overall, the market continues to show resilience despite a subdued economic environment and risks from geopolitical developments. There is likely to be a bump-up in consumer price inflation as household bills increase, but with further base rate cuts also expected, we anticipate a similar trend of modest price growth this year.”
No sign of a post-stamp duty slowdown
Rosie Hooper, chartered financial planner at Quilter Cheviot, said due to the time it took to finalise a property purchase, “the April price data offers one of the clearest indications yet of how the market is functioning without the support of favourable stamp duty rates and it suggests a stabilisation rather than a significant drop”.
She said the outlook for borrowing costs had improved, now that interest rates were lower, but added that “affordability remains a fundamental constraint”.
Mark Harris, chief executive of SPF Private Clients, agreed, adding: “As lenders cut mortgage rates and ease affordability criteria, borrowers are being given more options.
“With an increasing number of mortgages pegged at the psychologically important sub-4% level, there is less of a barrier for those who need to borrow to buy a home.”
Jason Tebb, president of OnTheMarket, said now that the stamp duty concession was out of the way, “the housing market continues to shake off external economic concerns and demonstrate remarkable resilience”.
He added: “With property prices remaining relatively steady, this suggests that affordability is having an impact on the amount buyers are willing and/or able to pay.”
Jonathan Handford, managing director at Fine and Country, said the house price increase in April defied expectations and indicated “a market that’s proving more resilient than predicted”.
“The rebound in prices suggests the market may be finding its footing after a turbulent few months. With conditions slowly improving, it’s no longer just a question of catching a deadline, but of catching the right moment to move,” Hanford said.
