UK house prices fall unexpectedly in April

British house prices fell unexpectedly for a second month running during April, figures from mortgage lender Nationwide showed on Wednesday.

House prices fell 0.4 per cent month-on-month, after a 0.2 per cent drop in March. A Reuters poll had pointed to a 0.2 per cent increase.

In annual terms, house price growth cooled to 0.6 per cent from 1.6 per cent.

The figures pointed to some moderation in the recent recovery in housing market activity, which saw mortgage approvals rise in March to their highest level since September 2022.

“The slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year,” said Robert Gardner, chief economist at Nationwide.

“House prices are now around 4 per cent below the all-time highs recorded in the summer of 2022, after taking account of seasonal effects.”