House prices fell by 3.1 per cent year-on-year in March, marking the largest annual decline since July 2009, according to new figures from Nationwide.
Across the UK, property values fell by 0.8 per cent month-on-month, taking the average house price to £257,122 in March.
While in London prices fell by 1.4 per cent over the past year to an average of £511,293 for the first quarter of 2023. The capital is still the most expensive UK region in which to buy a home.
Robert Gardner, Nationwide’s chief economist, said: “March saw a further decline in annual house price growth, with prices down 3.1 per cent compared with the same month last year.
“March also saw a further monthly price fall — the seventh in a row — which leaves prices 4.6 per cent below their August peak (after taking seasonal effects into account).
It will be hard for the market to regain much momentum in the near term
“The housing market reached a turning point last year as a result of the financial market turbulence which followed the mini-budget. Since then, activity has remained subdued.”
He continued: “It will be hard for the market to regain much momentum in the near term since consumer confidence remains weak and household budgets remain under pressure from high inflation.
“Housing affordability also remains stretched, where mortgage rates remain well above the lows prevailing at this point last year.”
Some estate agents said they have recently seen some positive signs in the housing market.
Jeremy Leaf, a north London estate agent, said: “Although these figures show house price growth is still slowing, we have seen signs of improvement over the last few months at the sharp end.
We have seen signs of improvement over the last few months at the sharp end
“Clearly the rise in mortgage rates and cost of living continues to weigh heavily. However, buyers have been tempted back by more choice and less competition compared with much of 2021 and 2022 as the balance between supply and demand improves.
“If anything, the passage of time has made the reasons for moving more compelling but buyers and sellers want to ensure they are not caught out financially so are trying to negotiate best possible terms, which has led to some price softening.”
https://www.standard.co.uk/homesandproperty/property-news/average-uk-house-prices-have-fallen-for-seven-months-in-a-row-b1071306.html