UK house prices fell month-on-month in April, according to the country’s biggest building society Nationwide, reversing the recent rebound.
The average price across the UK was £261,962. It was the first month-on-month decline since August, after a flat September and six consecutive rises. That was still up 0.6% year-on-year.
It comes after mortgage rates edged back up in the late winter and early spring, as markets readjusted to central banks’ “higher for longer” tone after an exuberant price-cutting fest to start the year.
The rises seemed to continue in recent weeks, with lenders including Santander and NatWest raising rates recently. That may put more downward pressure on house prices.
Robert Gardner, Nationwide's Chief Economist, 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. House prices are now around 4% below the all-time highs recorded in the summer of 2022, after taking account of seasonal effects.”
Michelle Lawson, director at mortgage broker Lawson Financial, said the market would not truly recover until the Bank of England cuts its base rate.
She said: “Rising mortgage rates have injected uncertainty into the market over the past month or so. Though there is still demand, we need a base rate cut and a Stamp Duty incentive to kickstart the market and get things moving again. Also, a General Election needs to be called sooner rather than later. The absence of a date for the General Election is adding to the mood of caution.”
