The average UK house price declined by 0.2% in the year leading up to February down from 1.3% in the year leading up to January.
Diverging UK House Price Trends Across the Nation as Rents Surge to Record Highs
Based on data from the Office for National Statistics (ONS), the average UK property price was £281,000.
During the same time period, average house prices in England declined to £298,000, a 1.1% fall, in Wales to £211,000, a 1.2% decline, and in Scotland to £188,000, a 5.6% increase.
According to the ONS, the recent jump in Scotland's annual inflation rate “is more reflective of Scotland's average house price falling this time last year, rather than increasing in recent months”.
Meanwhile, in Northern Ireland, average house prices increased by 1.4%, hitting £178,000 in the fourth quarter of 2023.
Furthermore, private rents in the UK rose by an estimated 9.2% in the year ended March. This growth is slightly greater than the 9.0% increase seen in the year ending in February, which was a record high since UK data collection began in January 2015.
The average private rent in Britain was assessed to be £1,246 in March, up £104 from the same period last year. According to March data, the average private rent in England was £1,285, up 9.1% (£107) over the previous year. This is the largest rise observed since the start of these statistics in 2006.
Rent prices in Wales were constant, rising by 9% (£60) over the previous year. As of March, the average private rent in Wales was £727. According to the ONS, this yearly growth rate has remained stable over the past year.
Scotland's average private rent reached £947 in March, up 10.5% (£90) from the previous year. The annual inflation rate in Scotland has been gradually declining since peaking at a record 11.8% in August 2023, according to the data.
Statistics for Northern Ireland were only available until January 2024. Here, average private rentals rose by 10.1% over the year to January, marking the highest significant yearly rise since records started in 2016.
Experts' Perspectives on UK Housing Market Dynamics
In the latest updates from the UK housing market, many experts are analysing the nuances of the data. Aimee North, the ONS's head of housing market indices, spoke on housing market trends, saying: “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.”
The findings were released on the very same day the ONS reported that Consumer Prices Index (CPI) inflation fell back to 3.2% in March from 3.4% in February. It was the lowest amount of inflation since September 2021, despite economists expecting a slightly lower estimate of 3.1% for the month.
Matt Smith, Rightmove's mortgage expert, said: “It's positive to see inflation continuing to fall this morning, albeit not by quite as much as expected, as the blocks continue to build towards the anticipated first base rate cut later this year. The market is proving resilient despite broader global uncertainty, however continued stability in mortgage rates should be seen as a positive outcome over the next few weeks.”