UK house prices were lower on-month in March, according to figures from Nationwide on Tuesday, while an annual price rise undershot expectations.
The Nationwide house price index showed a 0.2% increase in seasonally adjusted UK house prices in March from February, compared to a 0.7% rise in February from January.
According to FXStreet, market consensus expected the house price index to rise 0.3% last month.
In March, the average UK house price stood at £261,142, up from £260,420, without seasonal adjustment.
Annually, the house price index rose 1.6% in March compared to a year ago, improving from an annual rise of 1.2% in February but undershooting FXStreet-cited expectations of a 2.4% rise.
‘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,’ said Nationwide Chief Economist Robert Gardner.
‘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...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.’
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