House prices across the country continue to show minimal growth in March

Reading Time: < 1 minute

House price growth in the UK was described as “subdued” last month by the Nationwide, as higher mortgage rates impacted affordability. According to the UK’s largest building society, property prices rose by an average of 1.6% from March 2023, but fell by 0.2% compared to February.

While mortgage rates have decreased from their peak last summer, they are still significantly higher than the levels seen after the pandemic. The Nationwide noted that affordability remains stretched but is showing signs of improvement.

Robert Gardner, the chief economist at Nationwide, highlighted that affordability pressures on buyers are hindering activity in the housing market and price growth. For the average wage earner making around £35,000 per year, mortgage payments currently consume nearly 40% of their take-home pay, well above the long-run average of 30%.

In Northern Ireland and the North of England, house price growth outpaced other regions, rising by 4.6% and 1.7% respectively compared to last year. This was attributed to lower house prices in these areas, making them more affordable and driving up demand.

Despite the annual house price increase of 1.6%, which was the fastest rise since December 2022, prices fell by 0.2% in March, marking the first drop since December 2023. Mortgage approvals in January were 15% lower than pre-pandemic levels due to higher interest rates, which are currently at a 16-year high.

Looking ahead, experts predict that mortgage rates will gradually decrease, leading to continued house price growth. Chief economist Rob Wood believes that house prices will continue to rise, while estate agent Guy Gittins noted an increase in sales enquiries and offers in recent months.

Taylor Swifts New Album Release Health issues from using ACs Boston Marathon 2024 15 Practical Ways To Save Money