Month-on-month house prices fall in March

Additionally – while the annual change of prices rose from £260,420 to £261,142 – annual price rises remained fairly subdued, only going up by 1.6%. By region, Northern Ireland saw the best growth – with prices rising by 4.6% – while the southwest was the weakest performing region, with prices down 1.7% over the course of the year.

Reflecting on this, Nationwide’s chief economist Robert Gardner said: “Activity has picked up from the weak levels prevailing towards the end of 2023 but remains relatively subdued by historic standards.  

“For example, the number of mortgages approved for house purchase in January was around 15% below pre-pandemic levels. This largely reflects the impact of higher interest rates on affordability. While mortgage rates are below the peaks seen in mid-2023, they remain well above the lows prevailing in the wake of the pandemic.  
“With cost-of-living pressures easing as inflation moves back towards target, consumer sentiment is improving. Indeed, surveyors report a pickup in new buyer enquiries and new instructions to sell in recent months.

 
“Moreover, with income growth continuing to outpace house price growth by a healthy margin, housing affordability is improving, albeit gradually. If these trends are maintained, activity is likely to gain momentum, though the pace of the recovery is still likely to be heavily influenced by the trajectory of interest rates.”