House prices decline in March as north-south divide widens

House prices slipped by 0.2% last month after having risen in both January and February, according to Nationwide. The high street lender’s calculations suggest that the average price of a house in the UK is now £261,142. That is 2.2% higher than in August 2023, but is still 3.2% below the peak of a year earlier. Andrew Wishart, at Capital Economics, said Nationwide’s figures suggest the rise in mortgage rates since the turn of the year has caused house prices to stall. However, Rob Wood at Pantheon Macroeconomics said the drop was just a blip and the trend for the year was looking to be a rise of 4%. The North-South divide in the housing market is becoming more apparent, with prices rising in the North and falling in the South. Experts suggest that the market is made up of thousands of local markets, each performing differently. First-time buyers are taking advantage of the market, accounting for 33% of purchases this year. 

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