fell UK house prices at their fastest annual rate since 2009, after interest rate hikes pushed up borrowing costs.

The British Building Society reported that the average house price fell by 3.1% in March compared to last year, exceeding the 2.21% decline forecast by economists surveyed by Bloomberg News.

The association added that property prices have fallen by 4.6% compared to the peak reached last August, noting that the average property price stood at 257,122 pounds ($318,320).

These figures confirm that the Bank of England’s interest rate hike has cast a shadow over the country’s real estate market, which had remained buoyant during the recession that accompanied the COVID-19 pandemic.

Bloomberg quoted Robert Garnier, the association’s chief economist, as saying: “It will be difficult for the market to regain momentum in the near term, as consumer confidence remains weak and household budgets are still under pressure from rising inflation.”