Since April 2011 the housing market has fallen by a total of 0.9%, a symptom of an exhausted economy with squeezed wages and cautious banks unwilling to lend.
Nationwide’s chief economist Robert Gardner said: “The challenging economic backdrop suggests that a significant acceleration in prices or activity is unlikely near term.”
The Bank of England is unlikely to purchase further gilts until inflation subsides and until that happens, the housing market is expected to remain stagnant.
Bank of England data suggests a slight increase in mortgage lending in March, a movement that could help to further stimulate economic activity and get the ball rolling for the second quarter.
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