British house prices showed no growth in March, according to mortgage lender Nationwide, following a recent government move to lower the threshold for stamp duty – the tax paid on

property transactions.

Economists had expected a small monthly rise of 0.2%, based on a Reuters poll.

Nationwide’s chief economist, Robert Gardner, said the market may remain subdued for now, as many buyers rushed to complete deals before the new tax changes took effect – a trend often seen after stamp duty holidays end.

Other data supports the cooling trend: Bank of England figures show a drop in mortgage approvals in February, and surveyors reported slower price growth, according to the Royal Institution of Chartered Surveyors.

On an annual basis, prices were up 3.9%, slightly below the 4.1% expected.

Despite the current slowdown, Nationwide is cautiously optimistic about a rebound in the coming months. Factors such as low unemployment, improving real wages, and potential interest rate cuts from the Bank of England could help support the market.

Markets are currently pricing in about a two-thirds chance of a rate cut in May.