UK house prices dropped for the second month in a row in April, falling 4% from their peak.

Annual house price growth rate plummeted to 0.6% in April, indicating a deceleration in the housing market.

Affordability challenges have led nearly half of potential first-time buyers to postpone their purchase plans.

In response to high prices, buyers are exploring compromises such as considering less costly locations and smaller or fixer-upper homes.

Despite the downturn, buyer optimism and an uptick in viewing activity hint at underlying market stability.

Homeowners may face increased financial pressure as fixed low mortgage rates expire, yet a rebound in demand and house price growth is anticipated later in the year.

The Bank of England is expected to hike interest rates, with forecasts suggesting a possible increase to 5.25% on August 1.

First-time buyers are adapting to high prices and mortgage costs by exploring different regions or awaiting market stability and potential policy changes.