According to the report from the Office for National Statistics (ONS), average house prices fell by 0.6% per annum in January after falling by 2.2% per annum in December (revised from -1.4%). It was the fifth consecutive monthly decline. Economists had expected prices to fall by 0.7% per annum.
The ONS said that the average house price fell to 282,000 pounds in January. Average house prices decreased in England (-1.5%, to 299,000 pounds) and in Wales (-0.8%, to 213,000 pounds), but increased in Scotland (+4.8%, to 190,000 pounds). Average house prices increased by 1.4% to 178,000 pounds in the year to Quarter 4 2023 in Northern Ireland.
Separate data showed that in February the average UK private rent rose by 9.0% per annum after an increase of 8.8% per annum in January. That represents the highest annual percentage change since this UK data series began in January 2015. Average monthly rents increased to 1,276 pounds (+8.8% per annum) in England, 723 pounds (+9.0% per annum) in Wales and 944 pounds (+10.9%) in Scotland. In the 12 months to December 2023, average rents increased by 9.3% in Northern Ireland. In England, private rent inflation in the 12 months to February 2024 was highest in London (10.6%) and lowest in the North East (5.7%).