Latest inflation figure also lower than anticipated at 3.4%
House prices rose by 0.5% in January with the average property in the UK now costing £282,000, according to the latest figures from HM Land Registry. While prices were up on December, they fell by 0.6% nationwide year on year.
The North-east experienced the most signficant monthly decrease, with a negative movement of 1.7%, while London saw the greatest monthly growth at 2.5%.
Year-on-year prices in the capital fell 3.9%, however. The North-west recorded the greatest annual price rise (1%).
Nick Leeming, chairman of estate agent Jackson-Stops, said the figures showed that, despite a “subdued” start to the year and an “extended winter lull”, buyers and sellers were demonstrating confidence in the market.
“While affordability challenges do remain, with mortgage rates teetering up slightly in recent weeks and competitive deals staying on the market for just a matter of days, the mid-market and where committed buyers can press ahead with purchases is accelerating at pace,” he said.
Leeming added that the usual spring bounce would be “upon the market in haste this year”, although he noted that the recent Budget had done “little to provide clarity or insight from the government on possible manifesto pledges when it comes to housing”.
>> Also read: House prices increased 1.5% in March, says Rightmove
Mobeen Akram, new homes director at Mortgage Advice Bureau, said it had been a “positive” first quarter so far and that buyer confidence was “on the rise” despite a “challenging macroeconomic backdrop”.
“This is despite a lacklustre spring Budget, where the housing industry was left out in the cold,” he said.
“Housebuilding in particular needs more attention from the government, with more initiatives needed to make the new homes market more fluid and accessible.
Akram said the outlook for the year was “cautiously optimistic” and that there were signs 2024 could be “much more positive than anticipated”.
The latest house price figures come alongside new inflation numbers, which showed annualised inflation came in at 3.4% in February, down on the 4% reported in January and also below the forecasted 3.5%.
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