Additional signs of a possible cooling off period are occurring as indicated in the latest round of UK housing market data to become public. According to the latest figures from Nationwide, house price growth fell in the month of March for the first time in two years. March posted a decrease of 0.3% in house price growth to bring the average price of a UK home down to £207,308. This was not expected by housing experts who estimated an increase of 0.4%.

A week ago, Bank of England released a report saying mortgage approvals had fallen in the month of February. This news supports the fall in house price growth and is the first of its kind in the last six months.

The fresh data also supports claims the UK housing market will be under some pressure this year. Household budgets are tightening with low wage growth and an increase in inflation. This is making it a challenge to face any and possibly all major spending decisions.

Remortgage activity remains steady and moving at a favourable clip. Low interest rates are still making it possible for lenders to place attractive deals on the table. Households are saving significant amounts of money each month through a lower monthly mortgage payment, which is a safety net against rising inflation.

Howard Archer of IHS Markit commented on the latest data, saying: “Markedly weakening consumer fundamentals, likely mounting caution over making major spending decisions, and elevated house price to earnings ratios are likely to weigh down on housing market activity and house prices.”

Archer added: “However, a shortage of supply is likely to put a floor under prices. Consequently, we believe house price gains over 2017 will be limited to around 2.5%.”