House prices see biggest annual fall since 2009

House prices fell in March at their fastest annual pace for 14 years, according to the latest figures from the Nationwide.

The lender said prices were down 3.1% compared with a year earlier, the largest annual decline since July 2009.

The Nationwide said the housing market reached a "turning point" last year, after the financial market turbulence which followed the mini-budget.

Since then, "activity has remained subdued", it added.

"It will be hard for the market to regain much momentum in the near term, since consumer confidence remains weak and household budgets remain under pressure from high inflation," said Robert Gardner, Nationwide's chief economist.

A drop in house prices would generally be welcomed by potential first-time buyers, who have watched property values surge, even during the pandemic.

However, the reality is that renting has become more expensive for many people, and mortgage rates are higher than they might have planned for. The continuing rise in many regular bills and food prices are also adding to the financial strain.

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