The typical house price in the UK is now lower than it was a year ago, according to data from the Nationwide Building Society.
Following what the financial services firm has described as a “difficult month for the housing market” in April, the average British house is on the market for a price one per cent lower than 12 months ago.
Debt management concerns and financial constraints are thought to have contributed to the deterioration of the housing market and the trend towards lower property prices is now widely expected to continue.
“April’s fall in prices continues the trend of the last six months and reflects the weakening sentiment in the market brought about by poor affordability and tighter financial market conditions,” said Nationwide’s chief economist Fionnuala Earley.
Meanwhile, more than a million British homeowners are expected to see their fixed-rate home loan arrangement expire over the course of this year, which for many will mean more debt management trouble, according to the Council of Mortgage Lenders.