Linden Homes sales area, Crowdhill Green housing development

British House Prices Decline for the First Time Since 2020, Says Nationwide

Nationwide, the mortgage lender, reported today (March 1) that UK house prices fell for the first time in nearly three years year on year. This is in response to the growing signs of a slowdown in the housing market, exacerbated by high inflation and rising borrowing costs.

According to Nationwide’s report, home prices fell 1.1% in February year on year, marking the first drop since June 2020, during the first wave of the COVID-19 outbreak, when house prices declined slightly by 0.1%. Furthermore, the February figure marks the largest year-on-year decline since November 2012.

In comparison to January, house prices declined by 0.5% in February, the sixth consecutive monthly decrease, marking the longest consecutive decline since the global financial crisis between 2007 and 2009.

These declines in house prices suggest that the housing market’s boom is slowing down, as the rising inflation and borrowing costs continue to impact the market. Experts predict that the trend will continue as the Bank of England is expected to raise interest rates in the near future, putting further pressure on the housing market.

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