• Swindon & Wiltshire Economy
• Wednesday May 1 2024
• Author Name: Peter Davison

Unexpected fall in house prices in April – Nationwide

House prices fell unexpectedly in April, according to data from Swindon-based mortgage lender Nationwide.

The building society said that house prices fell by 0.4 per cent, following a 0.2 per cent month-on-month decline in March.

Year on year house prices were still up – but the rate of increase had slowed from 1.6 per cent to 0.6 per cent.

House prices are now around four per cent below the record highs seen in the summer of 2022, said the lender.

The average UK house price in August 2022 was £273,751. In April it stood at £261.962.

Nationwide said the cost of borrowing is partly responsible for the decline in prices.

First time buyers especially were putting off purchasing a home.

Robert Gardner, chief economist at Nationwide, said: “The slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year.

“Recent research carried out by Censuswide on behalf of Nationwide found that 49 per cent of prospective first-time buyers – those looking to buy in the next five years – have delayed their plans over the past year.

“Among this group, the most commonly cited reason for delaying their purchase is that house prices are too high (53 per cent), but it is also notable that 41 per cent said that higher mortgage costs were preventing them from buying.”

He added that the cost of living was also impacting the ability of first-time buyers to save for a deposit.

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