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Nationwide House Price Index – March

Monday, April 02, 2012

The latest Nationwide House Price Index for March shows that:

  • The price of a typical UK house declined by 1% in March
  • Prices are 0.9% lower than one year ago
  • The price of a typical home is now £163,327
  • The ending of the first-time buyer Stamp Duty holiday may have boosted demand
  • In London, prices were up by 0.5% - the largest monthly increase in the capital since April 2010
  • There were price falls in the Midlands and Northern Regions

Headlines

Mar-12

Feb-12

Monthly Index*

327.4

330.8

Monthly Change*

-1.0%

0.4%

Annual Change

-0.9%

0.9%

Average Price
(not seasonally adjusted)

£163,327

£162,712

* Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: "The price of a typical UK home fell by 1% in March, pushing the year-on-year rate of house price growth into negative territory for the first time in six months. House prices were 0.9% lower than March 2011.

"A slowdown was to be expected, given the imminent expiry of the Stamp Duty holiday, which had provided a temporary boost to house prices in early 2012 as buyers brought forward purchases that would otherwise have taken place later in the year.

"This dampening effect on housing market activity and prices may fade over the course of the summer, especially if the wider economic outlook begins to improve and other policy measures, such as the Government's NewBuy scheme, are successful in supporting buyer demand.

"However, in our view, the challenging economic backdrop is likely to continue to act as a drag, with house prices moving sideways or modestly lower over the next twelve months."

For further information, see the March report.

 

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