House price falls slow as rents hit new records

HOUSE prices are stabilising while rents are hitting new records, according to official figures.

The average UK house price fell by 0.2% in the 12 months to February, slowing from a decrease of 1.3% in the 12 months to January.

Across the UK, the average house price was £281,000, the Office for National Statistics (ONS) said.

In the 12 months to February, average house prices fell in Wales to £211,000 (a 1.2% decline), fell in England to £298,000 (a 1.1% decrease), and increased in Scotland to £188,000 (a 5.6% rise).

The ONS said the rise in Scotland’s annual inflation rate in recent months “is more reflective of Scotland’s average house price falling this time last year, rather than increasing in recent months”.

Average house prices increased by 1.4% to £178,000 in the year to the fourth quarter of 2023 in Northern Ireland.

Across the UK, private rents increased by an estimated 9.2% in the 12 months to March, up from 9.0% in the 12 months to February – marking the highest annual increase since the UK data started in January 2015.

The average private rent in Britain was £1,246 in March, which is £104 higher than 12 months earlier, the ONS said.

In Wales, the typical private rent was £727 in March, rising by 9.0% (£60) compared with a year earlier.

This annual rise was unchanged from the 12 months to Ferburary, the ONS said.

In England, rents rose by 9.1% (£107) from a year earlier to £1,285 in March.

This was the highest annual rise since records started in 2006.

The average private rent in Scotland was £947 in March, up by 10.5% (£90) from a year earlier.

Scotland’s annual inflation rate has been generally slowing since a record-high annual rise of 11.8% in August 2023, the report said.

Northern Ireland figures were only available up to January 2024.

Average private rents in Northern Ireland increased by 10.1% in the 12 months to January – the highest annual rise since records started in 2016.

ONS head of housing market indices Aimee North said: “Our latest UK housing market data show a mixed picture.

“Average UK house prices fell again over the year, but less steeply than in previous months. Meanwhile UK rental prices continue to set new records.”

Jake Finney, an economist at PWC UK, said the small 0.2% annual fall in house prices across the UK potentially signals “that we are approaching the end of the housing market correction”.