UK house prices post steepest fall since 2009

UK house prices fell more than expected and by the most since 2009 in March, according to data from mortgage provider Nationwide.

House prices fell by an annual rate of 3.1 per cent in March, following a 1.1 per cent decline in the previous month and marking the largest year-on-year drop since July 2009, data showed on Friday. That was a larger fall than the 2.2 per cent forecast by economists polled by Reuters.

Property prices fell 0.8 per cent between February and March, also a larger drop than expected.

The average house price has now fallen to £257,000, down from a peak of about £274,000 in August.

Robert Gardner, Nationwide’s chief economist, said: “It will be hard for the market to regain much momentum in the near term since consumer confidence remains weak and household budgets remain under pressure from high inflation.”