The common house value in the UK fell by 0.2 per cent in March, though there are indicators this might enhance extra in coming months, in response to a brand new report.
Property values elevated by 1.6 per cent yearly, taking the common UK house value to £261,142, Nationwide Building Society mentioned.
Mortgage charges have fallen from peaks final summer season, however stay above the low ranges seen throughout the Covid–19 pandemic.
The variety of authorised mortgages in January was round 15 per cent beneath pre-pandemic ranges, in response to Nationwide’s chief economist Robert Gardner, who pointed to indicators that client sentiment is enhancing.
The index additionally included information for the UK’s nations and areas, displaying annual adjustments throughout the three months to March.
The Independent has put collectively this map beneath displaying the common house prices and the annual house value change in the UK.
The figures confirmed that inside England there was a break up, with house prices usually rising in northern areas and falling in the South.
Mr Gardner mentioned: “Across northern England (together with the North East, North West, Yorkshire and the Humber, East Midlands and West Midlands), prices have been up 1.7 per cent 12 months on 12 months.
“Meanwhile, southern England (together with the South West, Outer South East, Outer Metropolitan, London and East Anglia) noticed a 0.3 per cent year-on-year fall.
“London remained the best-performing southern area, with annual value development recovering to 1.6 per cent. The South West was the weakest performing area, with prices down 1.7 per cent 12 months on 12 months.”
Mr Gardner mentioned Northern Ireland remained the best-performing space, with prices up by 4.6 per cent in contrast with the first quarter of 2023.
He continued: “Indeed, surveyors report a pick-up in new purchaser inquiries and new directions to promote in current months. Moreover, with revenue development persevering with to outpace house value development by a wholesome margin, housing affordability is enhancing, albeit step by step.
“If these developments are maintained, exercise is prone to achieve momentum, although the tempo of the restoration continues to be prone to be closely influenced by the trajectory of rates of interest.”
Rob Wood, chief UK economist at Pantheon Macroeconomics, described the month-on-month fall in house prices as a “blip”.
He mentioned: “Forward-looking indicators continue to suggest house prices will keep rising as mortgage rates gradually tick down… We continue to expect house prices to rise 4 per cent year over year in 2024.”
Additional reporting by PA
