House prices are still falling, says Nationwide

House prices fell by 0.4% in the last month, reversing part of the rise seen in the previous month, according to Nationwide.

The building society had reported a 0.9% increase in house prices in March, but has consistently emphasized that it is too early to talk of house price recovery.

In its latest reading, it found house prices had declined 15% in a year to an average price of £151,861.

‘While affordability is indeed more favourable and there does seem to be some cautious optimism from some quarters, it is still far too soon to say that this is the start of a solid revival in the market,’ said Fionnuala Earley, Nationwide's chief economist.

‘The correction in house prices and improved affordability conditions provide a good grounding for the market once domestic and global economic conditions once again become more favourable.’

Earley said that the measures announced in the Budget would be unlikely to boost the housing market. However, first time buyers, now faced with cheaper houses, could benefit from the extention of the stamp duty holiday, she said.

‘But it seems more likely that, for the most part, buyers will remain cautious as long as they think that prices will continue to fall.’

Earlier this week Hometrack also reported a fall in house prices in April.