UK house prices have been surging upward for years and last year was no exception. Even the beginning of this year proved to be a continuation of last year as house prices pushed to even higher levels. Those months have now ended in a manner which is surprising many close to the housing market. For the third straight month, UK house prices have fallen in value. This has not occurred since the economic crisis of 2009.

According to Nationwide building society, the UK housing market is officially cooling off. The annual growth rate of house prices has now crept over 2% which is the lowest in almost four years.

Nationwide chief economist Robert Gardner commented on the latest news, saying: “It is still early days, but this provides further evidence that the housing market is losing momentum. Moreover, this may be indicative of a wider slowdown in the household sector, though data continues to send mixed signals in this regard.”

He mentioned inflation is a key ingredient in the current slowdown as well as the slow rate of wage growth which continues.

As house price growth cools, remortgage remains quite warm. Many house owners continue to take advantage of historically low interest rates and find deals which are saving them money on the cost of their monthly mortgage payment. This trend is expected to continue according to many housing experts.

Gardner continued with words regarding the current climate within the housing market and the upcoming election, saying: “If history is any guide, the slowdown is unlikely to be linked to election-related uncertainty. Housing market trends have not traditionally been impacted around the time of general elections. Rightly or wrongly, for most homebuyers, elections are not foremost in their minds while buying or selling their home.”