Building society Nationwide has announced that housing inflation is at its lowest point in four years. Prices are 0.6% lower in March than a month earlier. This comes after a 0.5% rise in February. It is the largest month on month decline since June 1995. The dip took the annual growth rate down to 7.9%, the first time it has been in single digits since June 2001. Analysts believe the falls make it more likely interest rates will stay on hold for the foreseeable future. On a more positive note the Bank of England showed activity in the housing market was again stable in February. There were 85,000 mortgage approvals last month, the same as the average for the past six months. Net lending to home buyers rose from £7.1 billion to £7.2 billion in February. But mortgage equity withdrawal, where consumers extend their mortgages to finance other spending, nearly halved in the three months up to December 2004. It fell from £11.3 billion to £6.9 billion, possibly pointing to hard times ahead for high street retailers. (FT, Telegraph, Independent)