House prices fall as mortgage rates dampen demand

House prices in April fell at the sharpest rate since last summer as a recent rebound in mortgage rates put a dampener on demand. Prices retreated by 0.4% last month, the second monthly fall in a row and the largest Nationwide has recorded since August 2023. Robert Gardner, Nationwide's chief economist, stated that the slowdown likely reflects ongoing affordability pressures, with longer-term interest rates rising in recent months. Nationwide estimates that the average price of a house in the UK is £261,962, or about 4% below the peak in the summer of 2022. Mortgage rates fell sharply over the winter but have started to rise again, impacting first-time buyers. Half of prospective first-time buyers have delayed their purchase due to high house prices and higher mortgage rates. Affordability is expected to improve as the year progresses, leading to a rise in house prices again. 

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