Kim Kinnaird, of Halifax, said: “The resilience seen in house prices during 2023 continues to be underpinned by a shortage of properties available, rather than any significant strengthening of buyer demand.”
She added: “With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.”
The Office for Budget Responsibility (OBR) had previously predicted in March that house prices would crash close to 10pc in 2023.
But in its latest forecast unveiled alongside the Autumn Statement it said prices are now expected to be up almost 1pc for the year.
It has previously admitted that it made “genuine errors” in its previous economic forecasts in March 2021 and March 2022, underestimating the shock of inflation caused by Covid and the war in Ukraine.
David Miles, one of three members of the OBR’s executive team, said that the March 2023 forecasts were “almost guaranteed to be wrong” shortly after they were published, adding that the watchdog had been subject to accusations of being both “ridiculously optimistic” and a “bunch of pessimists”.
The latest figures from Halifax come after Nationwide posted a surprise increase in prices and reflect a dwindling number of sellers putting their properties on the market.
Karen Noye, of wealth managers Quilter, said: “New statistics on UK house prices suggest a market that’s cautiously threading its way towards stability.”
She added: “The push and pull of limited housing stock against high rental costs are nudging individuals towards homeownership. However, the shadows of steep mortgage rates and broader economic uncertainties are acting as a counterbalance, putting a stop to a more dynamic resurgence of the market after a long period of inactivity.”
Guy Gittins, chief executive of estate agents Foxtons, said: “A second consecutive monthly increase demonstrates further signs of property market positivity today.
“Although the market is yet to return to full health when viewing house price performance on an annual basis, it appears as though a freeze in interest rates is helping to boost homebuyer sentiment and bring a greater degree of stability.”
