House prices suffered a decline as mortgage approvals remain below pre-pandemic levels, according to a closely watched survey.

Property values fell by 0.2pc between February and March, the Nationwide house price index showed, although they were up 1.6pc compared to the same month last year.

The average home was worth £261,142.

Nationwide’s chief economist Robert Gardner said: “Activity has picked up from the weak levels prevailing towards the end of 2023 but remain relatively subdued by historic standards. 

“For example, the number of mortgages approved for house purchase in January was around 15pc below pre-pandemic levels. 

“This largely reflects the impact of higher interest rates on affordability. While mortgage rates are below the peaks seen in mid-2023, they remain well above the lows prevailing in the wake of the pandemic.”

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