Nationwide reports slight house price increase

House prices rose by 0.7 per cent month-on-month in March, according to the latest figures published by one high street building society.

Nationwide reported that the average price of a home in March was £164,519, up from £161,320 the month before, despite the annual rate of price inflation slowing slightly.

The annual change was reported as falling to nine per cent, from 9.2 per cent in February.

Nationwide said the stamp duty exemption for first-time buyers announced in last week's Budget were likely to save them an average of £1,368.

Martin Gahbauer, the lender's chief economist, commented that the last two months had been consistent with a relatively flat profile for house prices, and "in line" with the recent drops seen in buyer enquiries and house sales.

"Preliminary figures show that the number of loans taken out for house purchases failed to recover from January's large dip," he claimed.

"A greater-than-usual political and economic uncertainty ahead of the upcoming general election means potential homebuyers are proceeding cautiously," Mr Gahbauer added.

Last month, the Council of Mortgage Lenders reported that gross lending rose by six per cent to £9.2 billion during February 2010.

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2010-04-01 13:12:53 © Moneyextra.com