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UK house prices fall in March after 5 consecutive monthly increases

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UK house prices fell 1% in March from February, marking their first decline after five consecutive monthly rises and surprising economists who had expected a slight rise.

Mortgage lender Halifax, which compiled the data, said the drop showed that rising financing costs “continue to be a challenge” for buyers and that prices had shown surprising resilience in the months precedents.

The average price in March was 0.3% higher than a year earlier, a much smaller annual increase than the 1.45% expected by economists polled by Reuters.

In a note to clients, Capital Economics said: “Looking ahead, we expect mortgage rates to remain higher than in January and February and hover at just under 5% over the coming months, which will subdue demand and prevent further increases in house prices. .”

This is a developing story

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