Data published by Nationwide Building Society showed that housing prices fell by 0.4% in April, accelerating compared to March (-0.2%), and recording the second monthly decline in a row. Economists had expected prices to rise by 0.2%. In annual terms, house prices rose by 0.6% after an increase of 1.6% in March. This was the third increase in a row. Consensus estimates suggested an increase of 1.2%. As a result, the average price of a typical home (not seasonally adjusted) was 261,962 pounds compared to 261,142 pounds in March. Nationwide said that house prices are now around 4% below the all-time highs recorded in the summer of 2022, after taking account of seasonal effects.
“The slowdown in annual price growth 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 nearly half (49%) of prospective first-time buyers have delayed their plans over the past year. Coupled with this, 84% of prospective first-time buyers said that the cost of living has affected their plans to buy. Interestingly, 55% of respondents said they would be willing to buy in another part of the country where house prices are cheaper, or where they could buy a bigger property. Buying a property in a less expensive area appears to be the most common compromise that prospective buyers will make. Around a third (32%) said they would consider a smaller property than they wanted, while 28% would go for a property that needed work doing," said Robert Gardner, Nationwide's Chief Economist.