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UK house prices fell in February from a year before, according to lender Nationwide on Wednesday, amid dwindling consumer confidence and the continued fall-out from volatility in the mortgage market late last year.
The Nationwide house price index fell 1.1% on an annual basis in February, compared to the 1.1% rise seen in January.
On a monthly basis, prices fell 0.5% in February from January, slowing slightly from a 0.6% decline in January from December. It was the sixth consecutive monthly decline in UK house prices.
The average price of a house in UK was £257,406, down from £258,297 in January. House prices in February were 3.7% below their August peak.
Robert Gardner, Nationwide chief economist commented: ‘The recent run of weak house price data began with the financial market turbulence in response to the mini-Budget at the end of September last year. While financial market conditions normalised some time ago, housing market activity has remained subdued.
‘This likely reflects the lingering impact on confidence as well as the cumulative impact of the financial pressures that have been weighing on households for some time. Indeed, inflation has continued to outpace wage growth and mortgage rates remain significantly higher than the lows recorded in 2021. Even though consumer sentiment has improved in recent months, it is still languishing at levels prevailing during the depths of the financial crisis.’
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