Property prices in the UK rose by 1.6 % in March compared to the same month last year, however they fell by 0.2% compared with February according to the UK’s largest building society the Nationwide.
Mortgage rates have fallen since last summer, but they remain significantly higher than the levels seen after the pandemic.
The Nationwide’s chief economist told the Today programme that affordability pressures were affecting activity in the housing market, and that someone on the average salary of circa £35,000 was spending around 40% of their take home pay on mortgage payments, this compares to the long term average of around 30%.
Property price growth in The North and Northern Ireland was the strongest, growing by 1.7% and 4.6% respectively compared with 2023.
The annual house price increase of 1.6% was the highest since December 2022, and is forecast to accelerate through 2024 with the Bank Of England expected to start reducing interest rates as early as May or June.
