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UK Property Prices Fall by 0.4%, According to Nationwide

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    House Price Growth Stalls in UK Property Market; Buyers Looking at Less Expensive Areas

    In April, UK house prices dropped by 0.4% compared to the previous month. Annual house price growth also slowed to 0.6%, falling from 1.6% in March.

    Nationwide reports that the average UK home now costs £261,962 (not adjusted for seasonal variations). Although there’s been a decrease, prices are only 4% lower than their peak in the summer of 2022.

    Let’s see what this means for buy-to-let and the property market moving forward.

    Find Out More: Learn about the best buy-to-let areas in Liverpool and luxury property investment with our handy guides.  Or why not read more about the latest UK property investments that are available to invest in!

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      How Are Buyers Navigating the Current Housing Climate?

      Recent research conducted by Censuswide for Nationwide revealed that almost half (49%) of potential first-time buyers aiming to purchase a home within the next five years have postponed their plans in the past year.

      Among this group, the main reason for delaying their purchase is the high house prices, cited by 53%. Additionally, 41% stated that increased mortgage costs were a barrier to buying.

      Furthermore, 84% of potential first-time buyers mentioned that the rising cost of living has impacted their buying ability, resulting in less monthly money to save for a deposit. Currently, around two-thirds (67%) of respondents have saved between £0 and £10,000 towards a deposit.

      Discover More: Check out our guide on how to buy buy-to-let property for more property insights.

      Considering that a 10% deposit on an average first-time buyer property amounts to about £22,000, it’s understandable that approximately 60% of prospective buyers haven’t saved more than a quarter of their target deposit yet.

      Interestingly, 55% of respondents expressed willingness to purchase in a cheaper area or where they could afford a larger property. While preferences vary, half indicated they would move more than 30 miles from their current location.

      Opting to buy in a more affordable region seems to be the most common compromise among potential buyers. About a third (32%) said they would settle for a smaller property than desired, while 28% would consider a property needing renovation.

      If you’re an investor considering buying a property in a less expensive area, consider choosing the North West. According to Savills, the North West should see capital growth of 20.2% by 2028. In addition, the Savills cross-sector forecast suggests that the North West buy-to-let market will see returns of 9.2% in the next year, making cities like Liverpool and Manchester appealing to investors who want to capitalise on the current market conditions.

      As an alternative to buying a property that needs work, investors may also consider purchasing an off-plan development. Because these properties are bought before they are constructed, investors can get them for a discounted price, which could see significant capital appreciation once construction is completed.

      Read More: Want to explore property investment further? Check out our guides on buy-to-let property tax and buying a second property to rent out.

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      What Did Nationwide Make of the House Price Data?

      Nationwide’s Chief Economist, Robert Gardner, said: “UK house prices fell by 0.4% in April, after taking account of seasonal effects. This resulted in a slowing in the annual rate of house price growth to 0.6% in April from 1.6% the previous month. We have published a UK interest rates chart for our readers to review.

      “The slowdown likely reflects ongoing affordability pressures, with longer-term interest rates rising in recent months, reversing the steep fall seen around the turn of the year. House prices are now around 4% below the all-time highs recorded in the summer of 2022 after taking account of seasonal effects.”

      If you’re interested in buy-to-let investment, check out our regional investment guides, such as:

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      Dale Barham

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      Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.