Nationwide reports that annual house price inflation slowed to 9.3% in March, down from 10.2% in February, suggesting that the underlying trend is softening as interest rate rises feed through into the residential property market. However, Nationwide believes that continuing supply constraints will continue to support prices and current problems in the USA with sub-prime lending are unlikely to affect the UK.
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said: "The housing market showed further signs of cooling during March. The price of a typical house increased by 0.4% during the month, bringing the annual rate of house price inflation back into single digits at 9.3%. The price of a typical property in the UK is now £177,083, £15,000 higher than at this time last year. This is the equivalent of a monthly rise of £1,250 per month or £41 per day".
