March property prices fall to their lowest for six months

Average property values prices fell in March to their lowest level since October last year. At £220,303, the average price is up just 4.8% on year-ago levels and is actually down 1.2% on February’s £222,923.

Property values fell both for first time buyers and for home movers. However, the fall of just £891 - to an average £176,205 - for first time buyers underlines that this is the sector of the housing market still experiencing the greatest price pressures.

Despite the falls seen in the last month, first time buyers are still facing the largest increases in prices year on year, with the average price experienced by those looking to buy a house for the first time rising by 5.9%.

Robin Amlôt of Moneyextra said, “It looks like the mortgage market is beginning to slow down. The prospect of higher interest rates on the way and talk of base rate rising as high as 7.5% next year will have a dampening effect on the housing market over the coming months.”

The average value of mortgages actually completed by AWD Moneyextra customers in March fell again to its lowest level for three months at £142,708.75. The most popular mortgage lender in March was Lloyds TSB subsidiary Cheltenham & Gloucester.