Annual house price growth slowed to 6.3% in the 12 months to January 2023, according to the latest UK House Price Index published by the Office for National Statistics (ONS).

The figure reflects a significant fall from the 9.3% reported by the ONS in the year to December.

It leaves the average average UK house price at £290,000 in January 2023, which is £17,000 higher than it was 12 months earlier.

Average house prices increased over the year to £310,000 (6.9%) in England, £217,000 in Wales (5.8%), £185,000 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 the recent peak of 13.8% in the year to April 2022, slowing to 1.0% in the 12 months to January 2023.

Elsewhere, the ONS figures indicated that the North East has seen the highest annual percentage change of all English regions in the year to January 2023 (10.0%), while London has seen the lowest (3.2%).

Commenting on the ONS data, CEO and founder at Smartr365 and Capricorn Financial Consultancy, Conor Murphy, said that aspiring  buyers will be pleased to see “some of the heat coming out of the property market”.

“UK homes have always been hot property for both domestic and international buyers, but even more so in the last three years due to the generous stamp duty tax break,” Murphy said.

“Many expect the market to continue to cool off throughout the year, with estimates typically ranging between corrections of 8% (Halifax) and 5% (Nationwide). With prices having risen by 6.3% over the year to January, this will be welcome relief for those looking to take their first step onto the property ladder.

“Notwithstanding this, analysis of Land Registry data suggests that the largest uplift in transactions typically occurs in spring, creating an annual market bounce.”

Surveying director at Legal & General Surveying Services, Steve Rayers, added: “When it comes to property prices it’s important to take the long view, and overall property values are higher than they were last year and the market is resilient. Given owner-occupiers will spend an average of over 17 years in their home, these long-term trends are far more important to homeowners than month-on-month fluctuations.

“While the resilience of the market will come as a relief to homeowners, first-time buyers may still struggle to access the property ladder. Affordability is an increasingly key concern in this market, and many will understandably exercise caution when buying a property, which will likely be the largest purchase of their lives. In this climate, expert advice is more valuable than ever.”

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