Annual UK house prices edged up by 1.6% in March, according to new figures from Nationwide, the UK’s largest building society.

Every region of the UK experienced growth in year-on-year prices in the first quarter of 2024, the lender said. The average cost of a home is now £261,142.

While month-on-month growth in house prices fell by 0.2% in March, after taking into account seasonal effects, the overall figures have been cautiously welcomed by commentators.

Nationwide’s chief economist Robert Gardner said it showed “consumer sentiment is improving” as cost of living pressures ease and inflation comes down.

He added: “Surveyors report a pickup in new buyer inquiries and new instructions to sell in recent months.

“Moreover, with income growth continuing to outpace house price growth by a healthy margin, housing affordability is improving, albeit gradually.”

Please use Chrome browser for a more accessible video player

Also released on Tuesday was February data showing financial institutions approved the highest number of mortgages since September 2022 but the figure of 60,383 approvals is still about 10% below the pre-COVID-19 average.

House prices rise for first time in over a year

Investigation launched into eight homebuilders after ‘persistent under delivery’ of new houses

House prices up 0.7% from December to January, Nationwide says

Experts said the market would likely be boosted further in the coming months if, as expected, interest rates come down.

Read more:
Shop price inflation ‘almost halves’
How young workers pausing pension contributions costs them

Be the first to get Breaking News

Install the Sky News app for free

Nathan Emerson, chief executive of Propertymark, said: “Sellers have every reason to start feeling positive about putting their home up for sale and being able to go on to buy their next perfect property.

“2024 has shown a positive trend that house prices are growing once again following three years of economic turbulence.”

Keep up with all the latest news from the UK and around the world by following Sky News

Foxtons chief executive Guy Gittins said: “The UK property market has well and truly sprung into action in recent months and we’ve seen a notable uplift in the volume of sales inquiries, viewings requests, and the number of offers being submitted.”

However, he cautioned that high mortgage rates remained a “concern for many buyers” and that they would continue to influence prices.

Related posts:

Office provider IWG warns of profit hit as workers stay at home despite lockdown easing July inflation measure usually used to set annual rail fare rises is highest in ten years Travel hopes, retail slump, four-day week Marks & Spencer sets up three-way contest to succeed CEO Rowe Amazon shares plunge as it frets over rising costs and lower demand as COVID eases Pound rebounds in early Asia trading after Truss U-turn Online retailer ASOS recruits company doctor to fashion turnaround Morrisons’ underwear to include NHS cancer check labels Netflix reveals its most-watched show – users spent 812 million hours glued to it The triple lock, GDP and wine Tesla recalls more than two million cars in US over Autopilot concerns Indian pharma group Dr Reddy’s eyes swoop on Nicotinell