House prices in England and Wales fell by 3.6% year-on-year in January, e.surv’s house price index has shown.

The average house price in the UK currently stands at £361,029, which is an increase of 0.2%, following a 0.4% drop in December 2023.

The North East was the only region that recorded an increase in annual prices, increasing by 0.2% year-on-year, with the average house price now standing at £197,176.

The East of England saw an annual drop of 6.2%, while prices in the South East and Wales fell by 5.7% and 5% respectively.

The South West was also the only region to record a monthly increase in house prices, jumping by 0.5% between December and January.

Director at e.surv, Richard Sexton, said: "House prices in England and Wales saw a slight increase this month, rising by £620 (0.2%) to reach a level last seen in February 2022. This marks only the second time in the past 15 months that prices have grown by more than 0.1%.

"The three areas with an overall positive change in growth rates were the North East, Greater London and the South West. In December, for the fourth month in succession, the North East has the highest rate of price growth of all the 10 GOR areas."

Transactions remain at the lowest level of the last 17 years, with the average amount now standing at £361,029, a fall of 3.6% annually.

This follows on from a 3.9% fall in the annual rate in December.

Sexton added: "Our own experience is that market sentiment is improving. The combination of better news with regard to mortgage approvals in December and the holding of the bank base rate at 5.25% will encourage buyers.

"We, of course, have a Budget in less than a month’s time and all parties are looking at how they can better support the housing market."

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