UK house prices fell 1.1% in February as higher mortgage rates and the cost of living made housing less affordable.
Apart from a small drop early in the pandemic, it was the first annual decline in property values since November 2012, according to Nationwide.
Prices also fell 0.5% month-over-month from January.
The building society said it was “difficult for the market to bounce back strongly in the short term.”
“Economic drag is expected to remain relatively strong, with jobs expected to weaken as the economy contracts in the coming quarters,” said chief economist Robert Gardner.
He added that mortgage rates remained “well above” the 2021 lows.
