House prices in England and Wales are set to fall in March and April based on deals already agreed between buyers and sellers, indicating that the post-lockdown property market boom may finally be running out of steam.

Based on deals agreed between buyers and sellers in the run up to Christmas and over the new year period, house prices will rise by 0.2% in February before falling 0.9% in March and a further 0.8% in April.

Homebuyer activity at the start of the year has been strong, according to Rightmove and Zoopla, with record numbers of valuation requests and property searches suggesting the pandemic-driven ‘race for space’ continues to play out, yet it remains to be seen how much of this early home mover activity translates through to sales. Rising interest rates and concerns about inflation and the growing cost of living may already be having an impact on consumer sentiment, resulting in buyers agreeing to pay less for properties.

Reallymoving captures the purchase price buyers have agreed to pay when they search for conveyancing quotes through the comparison site, typically 12 weeks before they complete. This enables reallymoving to provide a three-month house price forecast that historically has closely tracked the Land Registry’s Price Paid data, published retrospectively.

Annually, price growth has remained positive since August 2020, a run of twenty months, with year on year increases of 5.4%, 4.4% and 1.4% forecast for February, March and April. Yet it’s clear that the rate of growth is slowing, indicating the post-pandemic housing market rush could be coming to an end as the market enters a calmer period.