The mortgage lander’s latest house price index showed, over the year to March, house prices have increased by 3.9% – the same rate of annual growth as February.
The area with the biggest growth in house prices over the last year was Northern Ireland where a typical home increased in value by 13.5%.
London, meanwhile, was the weakest region with house prices experiencing a 1.9% year-on-year increase.
The average house price in the UK today is now £271,316, according to Nationwide.
Robert Gardner, chief economist at Nationwide, said the fact average prices did not change over the month was ‘unsurprising’, given the end of the stamp duty holiday at the end of March.
He added: “The market is likely to remain a little soft in the coming months since activity will have been brought forward to avoid the additional tax obligations – a pattern typically observed in the wake of the end of stamp duty holidays.
“Nevertheless, activity is likely to pick up steadily as the summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.”
The unemployment rate is low, earnings are rising at a healthy pace in real terms (i.e. after accounting for inflation), household balance sheets are strong and borrowing costs are likely to moderate a little if Bank Rate is lowered further in the coming quarters as we and most other analysts expect.”
Advice to homebuyers facing stamp duty hikes
The stamp duty changes come into effect today and this means first-time buyers must now pay the tax if their property is £300,000 or more. Before today the nil rate threshold was at £425,000.
For those moving house the threshold has also fallen from £250,000 to £125,000.
This will have a big impact on those moving house and it will also affect first-time buyers in areas with higher house prices, such as London.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, explained this may hit the property market because homebuyers were likely to weigh up the cost of home ownership more carefully.
“As well as rising transaction costs,” she said, “they must contend with uncertainty about the wider economy as the country braces for the fallout from the triple hit to businesses this month from rising National Insurance costs, business rates and the minimum wage.”
The good news is that spring is typically a vibrant time for the property market as more people put their homes on the market for sale.
Haine added: “Now is the time to negotiate more heavily. Listings are on the rise, and with the Spring selling season now upon us, a time when more homeowners typically place properties on the market, it may be a buyers’ market once again.”
This view was echoed by estate agents. Matt Thompson, head of sales at Chestertons, said: “Despite the rush of first-time buyers entering the market to beat the stamp duty deadline having slowed down, sellers anticipate a busy spring market.
“We have seen an increasing number of homeowners listing their property for sale in March which is currently creating a greater choice for house hunters.
“Still, with London having one of the most competitive property markets in the world, buyers are required to act fast and start their search as early as possible.”
