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House prices down 3.1% year-on-year in March – the largest annual decline since July 2009, according to a report by Nationwide
The figures also revealed a monthly price fall of 0.8% - the seventh consecutive fall - which leaves prices at 4.6% below their August peak.
The data also shows that the average UK house price in March was £257,122.
Regionally, nine out of 13 regions saw house prices decline on an annual basis in the first financial quarter.
The outer South East fell 1.5% year-on-year, while London average property prices were down 1.4%.
However, the West Midlands, saw the strongest performance, with prices up by 1.4% compared with one year ago.
Robert Gardner, Nationwide’s chief economist, said: “March saw a further decline in annual house price growth, with prices down 3.1% compared with the same month last year. March also saw a further monthly price fall (0.8%) – the seventh in a row – which leaves prices 4.6% below their August peak (after taking account of seasonal effects).
“The housing market reached a turning point last year as a result of the financial market turbulence which followed the mini-Budget. Since then, activity has remained subdued – the number of mortgages approved for house purchase remained weak at 43,500 cases in February, almost 40% below the level prevailing a year ago.
“It will be hard for the market to regain much momentum in the near term since consumer confidence remains weak and household budgets remain under pressure from high inflation. Housing affordability also remains stretched, where mortgage rates remain well above the lows prevailing at this point last year."
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