House prices in the UK have fallen by 0.4% month-on-month, as the housing market continues to struggle with "affordability pressures", Nationwide has revealed.

The building society’s house price index (HPI) found that the average house price in the UK now stands at £261,962.

This follows a 0.2% drop in house prices in March, with Nationwide pointing towards a variety of financial factors as the reason for the month-on-month price drop.

Year-on-year, the HPI revealed that house prices increase by 0.6% in April, after jumping by 1.6% a month earlier.

Chief economist at Nationwide, Robert Gardner, said: "The slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year. House prices are now around 4% below the all-time highs recorded in the summer of 2022, after taking account of seasonal effects."

Research carried out by Censuswide, on behalf of Nationwide, revealed that almost half (49%) of prospective first-time buyers (those looking to buy in the next five years) have delayed their plans by over a year.

Of this group, the most common reason for delaying their home purchases was that house prices are too high (53%), but it was also notable that 41% said that higher mortgage costs were preventing them from buying.

This is coupled with 84% of first-time buyers stating that the cost of living has affected their plans to buy, having less money each month to save for a deposit.

Head of personal finance at Hargreaves Lansdown, Sarah Coles, added: "April was a bit of a washout for sellers, with rising mortgage rates pouring cold water on the fires of optimism that had been lit under the market early in the year. The fire is not yet out though.

"We know from yesterday’s Bank of England figures that mortgage approvals have risen again, and we also know these figures have suffered from seasonal adjustment – which expects a bounce in April. However, it’s not going to be balm to the souls of sellers. Meanwhile, first-time buyers face the worst of all worlds, as rising house prices and more expensive mortgages price them out of the market.

"Life for first time buyers continues to be incredibly tough, as they face a double-whammy of high house prices and higher mortgage rates. It’s one reason why so many of them are being forced to take on longer mortgage terms – averaging 32 years. Building a deposit is the key to affordability, but it’s a Herculean task at a time when rents are rising through the roof. It’s no surprise that two thirds of prospective buyers have saved less than £10,000."

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