Average UK house price £2,000 lower in January than a year earlier

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The common UK home worth fell by an estimated 0.6% within the yr to January 2024, in keeping with an index.

This took the typical worth of a house within the UK to £282,000, which was £2,000 decrease than 12 months earlier.

It adopted a lower of two.2% within the 12 months to December 2023, the Workplace for Nationwide Statistics (ONS) mentioned.

Within the 12 months to January 2024, common home costs decreased in England to £299,000 (down by 1.5%), decreased in Wales to £213,000 (falling by 0.8%), and elevated in Scotland to £190,000 (up by 4.8%).

Common home costs elevated by 1.4% to £178,000 within the yr to the fourth quarter of 2023 in Northern Eire.

Throughout the English areas, annual home worth inflation was highest within the North West, the place costs elevated by 1.0% within the 12 months to January.

London was the English area with the bottom home worth annual inflation, with costs falling by 3.9% within the 12 months to January.

Throughout the UK, common non-public rents elevated by 9.0% within the 12 months to February 2024, the ONS mentioned, representing the strongest annual development since UK information began in January 2015.

The common non-public lease in Britain was £1,238 in February, which was £102 greater than 12 months earlier.

Throughout Britain, the typical month-to-month non-public lease in February was highest in Kensington and Chelsea, London (£3,248) and lowest in Dumfries and Galloway, Scotland (£472).

Excluding London, the native space with the very best common non-public lease in February was town of Bristol (£1,734).

The figures have been launched as ONS knowledge confirmed that inflation eased again by greater than anticipated in February, boosting hopes {that a} minimize in rates of interest may very well be on the playing cards inside months.

Shopper Costs Index (CPI) inflation fell to three.4% in February, down from 4% in January.

Consultants anticipate inflation is now prone to fall again under the Financial institution of England’s 2% goal in April or Could.

Andrew Montlake, managing director of Coreco mortgage brokers, mentioned of the inflation determine: “It ought to relieve some pressures on swap charges which is able to see lenders begin to scale back mortgage charges as soon as extra.”

Matt Smith, Rightmove’s mortgage professional, mentioned of the inflation determine: “At this time’s information is constructive, and daily is one step nearer to after we may see the primary base price discount, and mortgage charges are prone to scale back earlier than this.

“I don’t suppose this can change the course of the Financial institution of England’s choice on the bottom price tomorrow, however I anticipate each the Financial institution and residential movers could have some renewed optimism for the route the financial system and mortgage charges are heading in after at present.”

David Hollingworth, affiliate director at dealer L&C Mortgages, mentioned: “The anticipated fall within the price of inflation ought to imply that mortgage debtors can relaxation simple and at present’s information shouldn’t lead to any huge market swings.

“Fastened (mortgage) charges have been nudging again up within the final month after charges dropped sharply within the early a part of the yr.”

Verona Frankish, chief govt of Yopa, mentioned: “With this morning’s inflation numbers coming in barely higher than anticipated, all eyes will probably be fastened on the Financial institution of England this week in anticipation of a base price discount.

“Whereas we anticipate these hopes could also be a tad untimely with respect to this week’s choice, it’s seemingly a matter of when, not if, a minimize does materialise.

“When it does, it’s prone to act as a shot within the arm to the UK property market, bringing additional stability, boosting purchaser sentiment and rising each transaction ranges and home costs consequently.”

Tomer Aboody, director of property lender MT Finance, mentioned: “Elevated exercise out there is probably going in coming months with inflation as soon as once more falling and a discount in rates of interest probably on the best way.”

Nicky Stevenson, managing director at property agent group Advantageous & Nation, mentioned: “Inventory ranges have been rising, and the market is changing into far more balanced.

“Nonetheless, pricing sensibly stays vital, significantly for sellers who’re pinning hopes on a fast transfer.”

Nick Leeming, chairman of property agent Jackson-Stops, mentioned: “Throughout the Jackson-Stops community in February we noticed an uplift month-on-month in value determinations, listings and exchanges, in addition to a constant variety of potential purchaser inquiries year-on-year.”

Nathan Emerson, chief govt of property professionals’ physique Propertymark, mentioned: “We at the moment are coming into spring, which historically is without doubt one of the busiest instances of the yr for the housing market.”

Rodrigo Conde Puentes, vice chairman, senior analyst at Moody’s Rankings mentioned: “Regardless of housing market correction dangers remaining excessive within the UK, we at the moment are forecasting solely a minor nominal decline (minus 1%) in 2024 as inflation slows down, the labour market stays strong and the rates of interest stabilise.

“We anticipate the restoration of home costs to start within the second half of the yr.”