Ashley Webb, senior UK economist at Capital Economics, said the new figures suggested the jump in mortgage rates since the start of the Iran war had “weighed more heavily on house prices” than the Nationwide data implied.
“Given many households are on fixed rate deals, house price growth will probably remain subdued in the coming months as the jump in mortgage rates takes time to be fully felt,” he added.
The average two-year fix was 5.9 per cent on Wednesday, up from 4.83 per cent at the start of March, according to finance website Moneyfacts.
“The sharp rise in mortgage rates and the weaker economic outlook since the start of the Iran war implies house price growth will remain soft this year,” said Webb.
“Much depends on how events in the Middle East evolve and whether the recently agreed two-week US-Iran ceasefire holds.”