UK house prices sees unexpected fall in April

UK house prices have seen a decrease for the second consecutive month in April, as per Wednesday data from Nationwide, a mortgage lender, as reported by Reuters.

The decline was 0.4 per cent on a monthly basis, following a 0.2 per cent fall in March, contrary to a predicted 0.2 per cent rise, according to a Reuters poll.

Year-on-year, the growth in house prices has slowed to 0.6 per cent from 1.6 per cent which indicates a slight easing in the recent revival of housing market activity, which had seen a surge in mortgage approvals in March, reaching their highest since September 2022.

Nationwide chief economist, Robert Gardner, suggests that the deceleration is likely due to persistent affordability issues, with long-term interest rates having increased in recent months, reversing the sharp decline observed at the start of the year.

Taking into account seasonal effects, house prices are currently about 4 per cent lower than the record highs witnessed in the summer of 2022.