House prices returned to growth as the housing market tries to “find its feet” in the era of higher interest rates, according to a lender.

Typical property values grew by 0.1pc between March and April, the Halifax house price index showed, after a decline of 1pc over the previous month.

It meant the average home was worth £288,949, which was 1.1pc higher than the same month last year, and down from a rise of 0.3pc last year.

Amanda Bryden, head of mortgages at Halifax, said: “While there is always much scrutiny of monthly price changes – and a degree of volatility is to be expected given current market conditions – the reality is that average house prices have largely plateaued in the early part of 2024.

“This reflects a housing market finding its feet in an era of higher interest rates. While borrowing costs remain more expensive than a few years ago, homebuyers are gaining confidence from a period of relative stability.”

It comes as Savills said it expects house prices to rise by more than £60,000 over the next five years as Britain’s mortgage crunch eases.

The estate agent significantly upgraded its five-year forecasts for the housing market, citing an “improved economic outlook”.

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