According to a report by Nationwide, the average UK property value fell by 0.3% during March, the first drop in value for nearly two years. The average property price in the UK now stands at £207,308.
According to the Nationwide Building Society, this is the first fall in property values since June 2015. The rate of growth has also slowed down, to 3.5% in March from 4.5% in February this year. The gap between the regions which are the weakest and strongest performing, has also lessened, now at its narrowest since 1978.
The growth of property prices has been gradually slowing down since the middle of 2016. According to experts, growth and activity has been restricted by the tighter affordability rules and lending criteria, while affordability has also been stretched. However, as there is a shortage of properties for sale combined with some of the lowest interest rates on record, property prices are being supported.
First time buyers will be pleased about the slowdown in property growth, especially if they are struggling to get onto the property ladder. However, existing homeowners who may be considering cashing in on equity may not be so happy. Price growth across the UK is mixed, with six regions experiencing an increase in property value growth and six seeing it ease.
First time buyers may want to maximise the availability of low interest rate deals with various lenders, to buy a home, seeking advice from a CeMAP qualified mortgage adviser.
