UK house prices unexpectedly drop for second consecutive month

UK house prices drop: According to data released by mortgage lender Nationwide on Wednesday, British house prices experienced an unexpected decline for the second consecutive month in April.

The month-on-month drop stood at 0.4 per cent, following a 0.2 per cent decrease in March, deviating from a projected 0.2 per cent increase indicated by a Reuters poll.

On an annual basis, the growth rate of house prices slowed to 0.6 per cent from 1.6 per cent, marking a notable deceleration.

These figures suggest a moderation in the recent resurgence of housing market activity, despite mortgage approvals reaching their highest level since September 2022 in March.

Robert Gardner, Nationwide's chief economist, attributed this slowdown to persistent affordability challenges, notably driven by the recent uptick in long-term interest rates, which reversed the sharp decline observed around the beginning of the year.

Gardner said, "House prices are now around 4 per cent below the all-time highs recorded in the summer of 2022, after accounting for seasonal effects."

The unexpected dip in house prices underscores the delicate balance in the British housing market, influenced by various economic factors and policy changes.

Market analysts are closely monitoring these developments, anticipating their potential implications for consumer spending, investment decisions, and overall economic sentiment.

(with Reuters inputs)