Annual house price growth slowed to 5.5% in the year to February, the latest UK House Price Index from the Office for National Statistics has shown.
This is down from 6.5% in the 12 months to January and is the third consecutive month in which prices have fallen.
According to the ONS figures, this left the average UK house price standing at £288,000 in February, which is £16,000 higher than it was a year earlier. However, it is down by £5,000 from a recent peak in November 2022.
Across the previous year up to February, the average house price climbed to £308,000 in England (6.0%), £215,000 in Wales (6.4%), £180,000 in Scotland (1.0%) and £175,000 in Northern Ireland (10.2%).
The ONS stated that Scotland’s annual house price inflation has generally been slowing since a peak of 13.8% in the year to April 2022, having now most recently slowed to just 1.0% in the 12 months to February 2023.
In England, the West Midlands saw the highest annual percentage change of all regions in the 12 months to February 2023 at 8.6%, while London saw the lowest at 2.9%.
Responding the latest ONS index, director of sales at Standard Life Home Finance, Kay Westgarth, said: “Houses prices are falling, albeit in slow motion, and rising interest rates are dovetailing with cost of living pressures, meaning many first-time buyers will struggle to take that first step onto the ladder.
“Nevertheless, it’s always important to take the longer view when considering the housing market – the number of transactions are still higher than pre-pandemic market level.”
Technical director at Legal & General Surveying Services, Malcolm Webb, added: “Though house prices have been correcting since October, the average property price tag is still 27% above its pre-pandemic level. The development of new mortgage products, and increasing lender competition, are helping to support demand in the market.
“However, although house price inflation is correcting from its pandemic peak, affordability does remain a challenge for many first-time buyers. In these challenging times, many buyers may look for ways to cut costs to get their purchase over the line.”
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