House prices rose by just 0.1 per cent in April for the second month in a row, despite low interest rates and high levels of employment.
The average house in England and Wales is now worth £301,606, with prices climbing just 0.5 per cent on the previous quarter, according to the latest YourMove house price Index.
Annual house price inflation remained steady, however, rising slightly to 3.5 per cent, while transaction levels dropped 7 per cent on March to 63,500.
The west Midlands saw the biggest gains during April, with prices up 0.5 per cent monthly and 6.2 per cent annually.
The east remained strong, growing by 4.9 per cent year-on-year and matching the west Midlands’ 0.5 per cent monthly gain.
London, in contrast, saw prices drop by 0.1 per cent, making it the worst-performing region apart from the north east (minus 0.4 per cent).
Although the announcement of the general election had no impact on the figures, YourMove warned it may have a similar knock-on effect further down the line.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said such a knock-on effect had occurred due to 2015’s stamp duty reforms, which have raised prices in England and Wales, excluding London and the south east, by boosting transaction levels among lower-priced properties and regions, where effective tax rates were reduced, and dampening transactions among higher-priced properties.
The trend has been reinforced by a market currently driven by first-time buyers, who are likely to look to cheaper property, according to the Council of Mortgage Lenders.
Mr Blake said: “Real transformation is needed to address the housing supply shortage. Recent reports from House of Commons committees have made a strong case for the government to do more.
“As manifestos are published ahead of the upcoming election, we hope there is commitment to bridging the gap between supply and demand which will stimulate more market activity, stability and enable more people to secure their dream home.”