House costs fell by 3.1% year-on-year in March, marking the largest annual decline since July 2009, Nationwide Building Society stated.
The figures additionally confirmed a month-to-month value fall of 0.8% – the seventh consecutive fall – which leaves costs 4.6% beneath their August peak.
Robert Gardner, Nationwide’s chief economist, stated: “The housing market reached a turning point last year as a result of the financial market turbulence which followed the mini-budget.
“Since then, exercise has remained subdued – the variety of mortgages permitted for home buy remained weak at 43,500 circumstances in February, virtually 40% beneath the extent prevailing a yr in the past.
“It will likely be onerous for the market to regain a lot momentum within the close to time period since client confidence stays weak and family budgets stay underneath stress from excessive inflation.
“Housing affordability also remains stretched, where mortgage rates remain well above the lows prevailing at this point last year.”
Nine out of 13 areas confirmed annual home value declines within the first monetary quarter – Scotland recorded the weakest efficiency, with costs down 3.1% in comparison with a yr in the past, a pointy slowdown from the three.3% year-on-year improve seen within the earlier quarter.
East Anglia had been the strongest-performing area final quarter but it surely noticed a major slowdown on this quarter, with costs down 1.8% year-on-year, giving it the weakest efficiency in England.
The outer South East fell 1.5% year-on-year and London was down 1.4%.
The West Midlands, nevertheless, registered the strongest efficiency, with costs up 1.4% in contrast with a yr in the past, and costs in Northern Ireland have been up 1.3% year-on-year.
In Wales, value development slowed from 4.5% to a decline of 0.7%.
Prices have been largely flat in northern England, whereas southern England noticed a 1.1% decline.
Nathan Emerson, chief government of Propertymark, the skilled physique for property brokers, stated: “Our member agents are reporting transaction levels year on year to be stable and listings of new properties coming to the market also being steady.
“With a stream of significant consumers nonetheless eager to maneuver, and costs nonetheless greater in comparison with this time final yr, sellers are nonetheless in a powerful place to promote, nevertheless they will not take a look at the market at greater costs and align with these achieved final yr. Instead, they might want to cut back or be open to gives so as to get a extra reasonable and environment friendly sale.”
Source: information.sky.com”