Increases in UK house prices in the three months to January were lower than that recorded in the three months to December 2017, the latest Halifax index has found.

House prices rose by 2.7% in the three months to December 2017, compared to 2.2% in the three months to January.

Mortgage approvals for house purchases ended 2017 with a sharp fall, according to Halifax statistics, dropping by 5.7 per cent from November 2017 to 61,039, the lowest level since January 2015.

Garring Property Finders managing director Jonathan Hopper said: “Property price rises may have frozen to a standstill, but the frost appears to melting fast.

“Ironically the freeze is worst in central London – which just a few years ago was the hottest of hotspots. The capital’s prime areas are seeing a flight of equity that’s sucking the momentum out of price rises and forcing committed sellers to radically lower their expectations.

“Meanwhile the flow of wealthy domestic buyers who are looking beyond the M25 for better value continues to boost demand – and prices – in several regional hotspots like Cambridge and Manchester. While flatlining prices will unsettle armchair valuers, the market is far from seizing up. HMRC figures show the total number of sales in 2017 was just 0.6% lower than in 2016, and in January we saw a renewed sense of purpose among buyers.

“The gap between consumer price inflation and average wage rises may have closed a touch, but affordability remains the single greatest challenge for many would-be homeowners. Nevertheless, on the front line we’re seeing reassuring levels of buyer intent – with those who have resolved to buy pressing ahead despite political and economic headwinds. Against that backdrop, January’s 0.6% month-on-month fall in prices sends a clear message to the market. Buyers should be wary of overpaying, and sellers need to be pragmatic in their pricing if they are achieve a sale to Britain’s committed but vigilant buyers.”

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