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House prices down 1.2% in March – the fourth monthly fall in a row

Christina Hoghton
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Christina Hoghton

Annual house price inflation is still in positive territority, but it’s falling

The average UK house price fell 1.2% to £285,000 in March 2023, said HM Land Registry.

It marks the fourth consecutive monthly fall.

Prices are still £11,000 higher than 12 months earlier, but £8,000 below the recent peak in November 2022, according to the official figures.

Average property prices in the UK increased by 4.1% in the 12 months to March 2023.

This is a fall from 5.8% recorded in the 12 months to February 2023 and way down on the peak of 14.3% in July 2022.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “House prices fell again in March, but so far, the slide has been short and shallow, and there’s every chance we could be heading for a soft landing.

“The immediate future could be bumpy. RICS figures continue to show a dearth of demand, with the number of new buyers falling in both March and April. It said house sales were down and prices continued to fall. We definitely can’t rule out more bad news in the coming months.

“However, there have been more positive signs from elsewhere in the market. The Bank of England said mortgages approved for new purchases rose significantly in March – which means more potential purchases this summer.”

Nathan Emerson, Propertymark CEO, added: “What we are now seeing is an interesting change in the property sales market as a fall in demand from buyers has allowed the number of homes available for sale to recover since the spike of activity seen during the pandemic.

“However, a steady level of transactions happening which is good news for the market and the wider economy.”