Changing expectations regarding interest rate cuts in the UK have contributed to a fall in house price growth, according to a closely watched measure.
Nationwide reported a 0.4% drop in average property costs last month compared to March, taking the annual growth rate from 1.6% to 0.6%.
Economists consulted by the Reuters news agency expected monthly growth of 0.2%.
The lender’s report said the easing reflected “ongoing affordability pressures, with long-term interest rates rising in recent months, reversing the sharp decline seen at the turn of the year.”
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The cost of fixed-rate mortgage arrangements has increased due to market expectations that a bank of england the interest rate cut seems further away than predicted at the beginning of the year.
According to the latest data from financial information service Moneyfacts, the average two-year fixed home mortgage rate is still rising towards the 6% mark last seen since December.
It registered a value of 5.9% on Monday – up from 5.87% seen last Friday.
The five-year average rate is close to 5.5%.
The increases reflect rising borrowing costs for lenders themselves.
Everything is based on market expectations that a cut in interest rates in the United Kingdom will only occur in August.
The previous bets had been in May, but the Bank recently signaled that it would not ease its concerns about the outlook for inflation, with those including the pace of wage growth remaining too high.
Across the country said wider cost of living Pressures continued to weigh on buyers throughout April, despite the pace of wage growth being almost double the pace of price growth.
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Robert Gardner, chief economist at Nationwide, said: “A recent survey carried out by Censuswide on behalf of Nationwide found that almost half (49%) of potential first-time buyers (those looking to buy in the next five years) have delayed their plans longer last year.
“Among this group, the most cited reason for delaying purchasing is that house prices are too high (53%), but it is also notable that 41% said higher mortgage costs were preventing them from buying.
“Alongside this, 84% of potential first-time buyers said the cost of living had affected their purchasing plans, for example by having less money each month to save for a deposit.”
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