House prices see subdued growth in March: Nationwide

The data shows that Northern Ireland remained the strongest performing area in Q1, although annual price growth softened to 3.3%, from 5.8% last quarter. Scotland saw a slight pick up in annual price growth to 2.4%, while Wales saw a marked slowing in growth to 0.9% from 4.0% last quarter.

Meanwhile, England recorded its first annual price fall since 2012, with prices down 0.7% compared with Q1 2018, driven by declines in the South East of England.

London was the weakest performing region in Q1, with prices 3.8% lower than the same period of 2018 – the fastest pace of decline since 2009 and the seventh consecutive quarter in which prices have declined in the capital.

Robert Gardner, Nationwide's chief economist, said: “Indicators of housing market activity, such as the number of property transactions and the number of mortgages approved for house purchase, have remained broadly stable in recent months, even though survey data suggests that sentiment has softened.

“Measures of consumer confidence weakened around the turn of the year and surveyors report that new buyer enquiries have continued to decline, falling to their lowest level since 2008 in February.

“While the number of properties coming onto the market has also slowed, this doesn’t appear to have been enough to prevent a modest shift in the balance of demand and supply in favour of buyers in recent months."

Mark Harris, chief executive of SPF Private Clients, commented: "While one would expect housing market activity to spike in March as we move into the traditionally busy time of year for buying and selling a home, the fact that price growth, transactions and number of mortgages approved have managed to remain broadly stable is remarkable given the ongoing political situation.

"Once again, annual price falls in London and the south east demonstrate that the housing market is not a uniform one across the country, and some areas are struggling more than others."

Tomer Aboody, director of specialist lender MT Finance, added: "Considering the political uncertainty created by Brexit, combined with regulatory and tax changes in the buy-to-let sector over the past couple of years, it is not surprising to see slow house price growth, and falls in London and the south east, which over the years have always seen higher prices than the rest of the UK.

"It shows that buyers are less likely, and a bit tentative, to pull the trigger. Many sellers are demonstrating the same caution when it comes to putting their property on the market. Buyers and sellers on the whole are waiting for more certainty and the confidence to act. This confidence is so important to the market - people need to know where they are.

"A drop in transactions tends to mean a drop in prices. People who are selling now tend to be those who have to - whether it’s for downsizing, relationship breakdown, moving for work - so prices have fallen as they may be more eager to sell and take a lower price to get the sale through.

"Overall though the market is proving to be pretty stable, which is pretty remarkable."