Rate of annual house price growth slows to 5.5% – ONS

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.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.


Inside the world of high net worth lending
The mortgage market continues to evolve, and so too does the answer to the question: what is a high net worth individual in today’s market? In this episode of the Mortgage Insider podcast, host Phil Spencer is joined by Stephen Moroukian, Head of Product and Proposition for Real Estate Financing at Barclays Private Bank, and Islay Robinson, founder and CEO of Enness Global. Together, they explore what brokers really need to know when supporting high net worth individuals.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.