House prices increased by 0.7% monthon- month in March
Annual rate of price inflation remains relatively high at 9.0%
Stamp duty savings of £1,368 for typical first-time buyer
Commenting on the figures Martin Gahbauer,
Nationwide's Chief Economist, said:
“The price of a typical UK property rose by a
seasonally adjusted 0.7% month-on-month (m/m) in
March, largely reversing the 0.8% m/m fall measured
in February. The smoother three month on three
month rate of inflation edged down further from 1.8%
in February to 1.6% in March. At £164,519, the
average price of a typical property is 9.0% higher
than a year earlier.
“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 (chart 1), 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 homebuyers 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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