"Although we have seen a slight dip demonstrated within the latest ONS figures, we are now entering spring, which traditionally is one of the busiest times of the year for the housing market. This is an ideal time for buyers to start looking for homes that they can afford."
- Nathan Emerson - Propertymark
Average UK house price annual inflation fell by 0.6% in the 12 months to January 2024, compared with a fall of 2.2% in the 12 months to December 2023, according to this morning's data released by Land Registry.
Average UK house price stood at £282,000 in January 2024 (provisional estimate)- £2,000 lower than 12 months ago.
Regional breakdown
Average house prices in the 12 months to January 2024 decreased by 1.5% in England to £299,000, by 0.8% in Wales to £213,000, but increased in Scotland to £190,000 - a rise of 4.8%. The average house price increased in the year to Q4 (Oct to Dec) 2023 to £178,000 in Northern Ireland (1.4%).
On a non-seasonally adjusted basis, average UK house prices increased by 0.5% between December 2023 and January 2024, compared with a decrease of 1.1% during the same period 12 months ago.
Of English regions, annual house price inflation was highest in the North West, where prices increased by 1.0% in the 12 months to January 2024. London was the English region with the lowest annual inflation, where prices decreased by 3.9% in the 12 months to January 2024.
Tom Bill, head of UK residential research at Knight Frank commented: “Although UK house prices are heading back into positive territory, the recovery is slower and more inconsistent than expected two months ago.
"Mixed signals on inflation mean rate cut expectations have cooled, mortgage costs have crept up and downward pressure on house prices has increased. Based on current evidence, buyers can expect a rate cut in the summer rather than the spring although mortgage rates may fall slightly in coming months if core inflation comes under control.”
Nathan Emerson, CEO of Propertymark, said: “Although we have seen a slight dip demonstrated within the latest ONS figures, we are now entering spring, which traditionally is one of the busiest times of the year for the housing market. This is an ideal time for buyers to start looking for homes that they can afford.
“Propertymark’s own Housing Insight Report showed that there is an 80 per cent increase in the number of new properties coming to the market. With house prices continuing to normalise following the turbulence of the last three years, there should be no reason why people should hesitate to buy their ideal home.”
Richard Harrison, Head of Mortgages, Atom bank comments: “There are signs that house price falls are starting to slow, with January’s figures from the Office for National Statistics (ONS) showing house prices fell by just 0.6% in the twelve months to January.
"Ongoing economic pressures and affordability constraints at the start of the year meant that buyer confidence did not fully return to the housing market.
"Looking ahead, while the jury is still out on whether we will see further house prices fall in Q2, the news last week that the UK economy returned to growth in January should in part help boost buyer confidence. News this morning that inflation is falling faster than expected will also be well received, increasing expectations of base rate cuts and lower mortgage rates.
"Affordability pressures remain, however, with Moneyfacts figures showing that mortgage rates in March started to creep up again and the average shelf-life of a mortgage product dropped to just 15 days.
"As the mortgage market picks up pace, Atom bank remains committed to supporting brokers and their clients, with service remaining our key focus.”
Jean Jameson, Chief Sales Officer at Foxtons, said: “We have experienced a strong start in January with increasing levels of buyer and seller activity. Buyer registrations were up 19% and viewings completed up 28% year-on-year. This has been matched with a good level of property supply, with Foxtons’ instruction numbers up 22% month-on-month, showing that buyers and sellers are both keen to trade.”
Matt Thompson, head of sales at Chestertons, says: “The gradual introduction of more attractive mortgage products boosted buyer confidence in January, resulting in more buyers entering the market. This increase in activity was further driven by pent-up demand from house hunters who were unable to find a property last year.
"Sellers also felt more confident about attracting the right buyer for their home. This led to a slight increase in the number of properties being put up for sale that month.”
