The Office for National Statistics (ONS) published their monthly House Price Index for January 2024. Here’s our summary.

The latest figures have presented a mixed bag of decreases and increases across the nation, painting a complex picture for potential buyers and sellers.

Matt Corder, Deputy Director for Prices at the ONS, said on Twitter, “Average UK house prices continued to fall, albeit at a slower annual rate than seen recently. Indeed, Scotland’s average house prices rose at their fastest annual rate for more than a year.”

The overarching trend for the UK as a whole has seen a slight decrease in average house prices by 0.6% over the 12 months leading up to January 2024, with the provisional estimate pegging the average house at £282,000. This marks a less steep decline compared to the 2.2% decrease observed in the year to December 2023, suggesting a potential stabilisation in the market.

Regional Breakdown

Looking deeper into the data reveals a varied picture across the UK’s nations:

• England: Homeowners have faced a tougher market, with average prices falling by 1.5% to £299,000. This decrease highlights the challenges in the largest UK housing market.
• Wales: The Welsh market has also seen a decrease, albeit a more modest one, with prices dipping by 0.8% to £213,000. This suggests a slightly more resilient market compared to its English counterpart.
• Scotland: Bucking the trend, Scotland has witnessed a notable increase in house prices, jumping by 4.8% to an average of £190,000. This growth indicates a robust demand and a potentially more attractive investment landscape.
• Northern Ireland: Demonstrating the most significant increase of all, Northern Ireland saw average house prices rise by 1.4% to £178,000 in the year to Quarter 4 (October to December) 2023. This increase adds a positive note to the UK’s overall housing market scenario.

What Does This Mean for You?

The current state of the UK housing market suggests a period of adjustment and rebalancing across different regions. For potential buyers, the decrease in prices in England and Wales could present an opportune moment to enter the market, albeit with caution given the overall economic context. On the other hand, the price increases in Scotland and Northern Ireland might encourage homeowners in these regions to consider selling or investing further.

In a market characterised by regional disparities, it’s more important than ever for buyers and sellers to stay informed and considerate of local trends and forecasts. While some may find the current conditions challenging, others might see them as ripe with opportunity. The key lies in thorough research, careful planning, and, when possible, consultation with real estate professionals.