31 March 2023
If you are covering the Nationwide House Price Index, please see the following comment from Karen Noye, mortgage expert at Quilter:
"The latest Nationwide figures reveal that house prices have recorded their seventh consecutive monthly decline in March, with an annual decline of 3.1% - the largest since July 2009.
"All regions saw a slowing in price growth in Q1, with most seeing small year-on-year falls. However, the West Midlands was the strongest performing region, with prices up 1.4% compared to a year ago. Meanwhile, Scotland remained the weakest, with prices down 3.1% year-on-year - a sharp slowing from the 3.3% year-on-year increase the previous quarter.
"Some more positive news for the housing market this week, came from the Bank of England, which showed that mortgage approvals were slightly up potentially pointing to more people entering the market which should shore up prices. But this is still subdued as the number of mortgages approved for house purchase went up to 43,500 cases in February, almost 40% below the level prevailing a year ago.
"However, it’s important to look at the wider economic backdrop before making predictions as at present at best house prices are likely to stagnate due to the cost of living pressures impacting the nation. With weak consumer confidence and stretched affordability, it will be hard for the market to regain much momentum in the near term. Furthermore, household budgets remain under pressure from high inflation, and housing affordability remains stretched as mortgage rates remain well above the lows prevailing at this point last year. When the Bank of England starts to reduce interest rates and inflation returns to more normal levels we may again see demand pick up as mortgage costs become more affordable."
