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UK house prices fell 1 per cent in March from February, marking their first fall after five consecutive monthly rises and surprising economists who had expected a slight increase.
Mortgage lender Halifax, which compiled the data, said the fall showed that rising borrowing costs “continue to be a challenge” to buyers and that prices had shown surprising resilience in previous months.
The average price in March was 0.3 per cent higher than a year earlier, a much smaller annual rise than the 1.45 per cent expected by economists polled by Reuters.
In a note to clients, Capital Economics said: “Looking ahead, we expect mortgage rates to remain higher than in January and February and hover at just under 5 per cent over the coming months, which will subdue demand and prevent further gains in house prices.”
This is a developing story