House prices see 1.6% rise in March compared to last year says Nationwide

According to the figures, the average non-seasonally adjusted UK house price was at £261,142 in March 2024, compared with £257,122 this time last year and £260,420 in February 2024.

In the first quarter of 2024 Northern Ireland saw the largest annual change at 4.6% while the region also grew by 4.5% from the previous quarter.

The South West saw the most negative change with a -1.7% annual change in Q1 2024, while the region saw a change of -2.3% from Q4 2023.

Industry professionals had their say on the recent Nationwide HPI.

Mark Harris, CEO at SPF Private Clients:

“What happens next with mortgage rates could have a significant impact on property market activity and ultimately house prices.

“Buyers and sellers have been more active since the start of the year as it looks as though base rate has peaked, and the next move in rates will be downwards — however, affordability is still an issue for many, thanks to many consecutive rises in base rate before we got to this point, along with the elevated cost of living, particularly energy costs and food.

"There are likely to be ups and downs in mortgage pricing in the weeks and months ahead as lenders jostle for position and business but there is a growing feeling of optimism that the situation is improving overall, which will be welcomed by hard-pressed borrowers.”

Hannah Bashford, director at Model Financial Solutions:

"There's no doubt that the trajectory of interest rates will be key to the recovery of the property market moving forward.

“If the BoE cut rates in the next few months, this will definitely help to stimulate the market and we’ll see more people moving again, which will help to boost house prices.

“We're finding more people are coming to terms with the idea of higher interest rates so are moving on with their lives and this means the market hasn’t stalled as it was expected to.

“We’ve seen a couple of remortgage properties subject to down valuations, but in an uncertain market we often see surveyors valuing properties cautiously.

Andrew Montlake, managing director at Coreco:

"The market in the first quarter of the year has been bustling compared to the tumbleweed of the previous quarter.

“After the Easter break, I suspect we will see a further rise in activity as pent-up demand from buyers, further buoyed by the easing of mortgage rates and criteria, prevent property prices from falling further.

“Add to this a handful of lenders who have at least made an attempt at innovative new products, and expectation of another government scheme, and the property market will continue to confound those consistently, and wrongly, predicting wholesale doom.

“As sentiment improves, this in itself will see more buyers hit the market as they will not want to miss the boat before house prices, especially in high demand areas, begin to stabilise and rise once more, albeit at a slower pace than in previous years.