House prices in the UK fell for the fifth month running in March, according to the latest report from the Nationwide.

The average house in the UK fell in value by 0.6% for the month which means that the average rate of house price growth was just 1.1% for the preceding 12 months. This is the lowest rate of annual growth since March 1996.

The price of a typical house in the UK is £179,110, £2,027 more than this time last year. Estate agents are all very concerned, but a large number are putting a brave face on the situation. They have pointed out that house prices are still 47% higher than they were 5 years ago a flat average growth of 9.4% per annum.

House prices are influenced by a number of factors, but market confidence is a major factor. If confidence about future growth is low, then there is less speculation in the market and therefore the demand lessens. If demand reduces, then so do prices.

With the slowing of property growth in the UK and a volatile and poor performing stock market, many investors are worried about where their growth will come from. If your choices are putting cash in the bank, or investing in the overseas property market, Olive Tree would like to think that the latter is the more sensible option.

Call your Olive Tree Business Partner or our offices direct on Tel 0845 257 0227 for our top property investment tips.