(RTTNews) - UK house prices declined unexpectedly in April, reflecting affordability pressures amid rising longer term interest rates, data published by the Nationwide Building Society revealed on Wednesday.
House prices posted a monthly decline of 0.4 percent after easing 0.2 percent in March. Prices were expected to climb 0.1 percent.
On a yearly basis, house price growth eased more-than-expected to 0.6 percent from 1.6 percent in March. Prices were forecast to rise 1.2 percent.
"The slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year," Nationwide Chief Economist Robert Gardner said.
Gardner said house prices were around 4 percent below the all-time highs recorded in the summer of 2022.
A recent research conducted by Censuswide, on behalf of Nationwide, showed that nearly half of prospective first-time buyers delayed their plans due to too high house prices and higher mortgage costs. About 84 percent of prospective first-time buyers said the cost of living affected their plans to buy. The research also indicated that 55 percent said they would be willing to buy in another part of the country where house prices are cheaper, or where they could buy a larger property.
Official data released this week were upbeat. Mortgage approvals rose to an 18-month high of 61,300 in March.
Over the last five consecutive meetings, the Bank of England has kept its interest rate unchanged at 5.25 percent, the highest level since early 2008.
