"It certainly seems as though dark clouds are gathering on the horizon with a reduction in pace already materialising on a monthly basis."
The average UK house price was £278,000 in March, which is £24,000 higher than this time last year.
Average house prices increased over the year by 9.9% in England, 11.7% in Wales, 8.0% in Scotland, and 10.4% in Northern Ireland.
The East Midlands was the region with the highest annual house price growth, with average prices increasing by 12.4% in the year to March. This was up from a growth rate of 11.6% in February 2022.
The lowest annual house price growth was in London, where average prices increased by 4.8% over the year to March, down from 7.8% in February.
Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: "With inflation hitting 9 per cent, cost of living increases alongside rising base and mortgage rates is causing concern around affordability and borrowing potential, as well as the potential knock-on effect to house prices.
"Lenders remain keen to lend with a number making tweaks to criteria to enable this to happen, such as Nationwide raising its loan-to-income cap on like-for-like remortgages, while still ensuring they are lending in a responsible way.
"Mortgage rates remain competitive although they are on the rise. Borrowers need to move quickly to secure the best rates as they are often pulled at short notice."
Melanie Spencer, head of finova Payment and Mortgage Services, said: “A lack of sufficient housing supply has continued to drive up property prices in March. Yet, in the coming months we can expect homebuying activity in the market to slow as surging inflation and the ongoing cost of living crisis continue to dent people’s savings and leave their finances stretched.
“Following a record-breaking two years, brokers will now be feeling challenged in new areas as they support clients facing financial difficulty. For first-time buyers and movers attempting to navigate the property ladder, rising bills paired with higher interest rates may set back their housing plans, while others will need support with remortgaging.
“During what will still be a busy time, mortgage clubs will be on hand to support stretched brokers with market-leading technology designed to automate tasks. This will help them keep on top of their workloads and give them more time to support their clients who are in need.”
Managing director of Barrows and Forrester, James Forrester, commented: “The economy continues to wobble against a backdrop of rising inflation and the cost of living crisis and so the old adage of ‘what goes up must come down’ may certainly be on the minds of many where the UK property market is concerned.
So far, this worry is yet to be realised and the market continues to move forward at speed, seemingly impervious to the influence of the wider economic landscape.”
Director of Benham and Reeves, Marc von Grundherr, added: “The winds of change are certainly starting to blow and and while this building economic headwind is yet to derail the phenomenal rates of house price growth being seen across the UK on an annual basis, it certainly seems as though dark clouds are gathering on the horizon with a reduction in pace already materialising on a monthly basis.”
