House prices rise by 0.7%
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House prices increased by 0.7% in March, largely reversing the 0.8% drop recorded in February.
Data from Nationwide shows that the average house price in the UK now stands at £164,519, compared to £161,320 the previous month.
According to Nationwide house prices are now 9% higher than a year ago.
Martin Gahbauer, chief economist at Nationwide, says: “The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales.
“Preliminary figures show that the number of loans taken out for house purchases failed to recover from January’s large dip, suggesting that weakness in house sales at the start of the year may have been due to more than just the snowy weather.
“With greater than usual political and economic uncertainty ahead of the upcoming general election, potential home buyers are proceeding cautiously.
“At the same time, the number of homes for sale has not increased appreciably, meaning that the impact of lower buyer activity on house prices has not been too negative. If this trend continues, we are likely to see relatively few properties changing hands, but with prices fairly stable.”
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