House prices fell year-on-year at their sharpest rate for 14 years in March, figures show.
Average property values dropped by 3.1 per cent, the largest annual decline since July 2009, according to the Nationwide Building Society.
It marks the seventh consecutive monthly fall, with experts warning it will be hard for the market to ‘regain momentum’ in the coming months.
A typical home is now worth £257,122, 4.6 per cent less than the peak in August 2022, when the average home was valued at £273,751 – a difference of £16,629.
The soaring cost of borrowing and reduced buyer confidence were to blame for the decline in prices, the building society said.
Nationwide chief economist Robert Gardner said: ‘It will be hard for the market to regain much momentum in the near term.
‘Consumer confidence remains weak and household budgets remain under pressure from high inflation.’
Experts predict property values will fall 10 per cent this year.