UK house prices increased by 8.4% in the year to January 2015, down from 9.8% in the year to December 2014, according to the Office for National Statistics (ONS).
House price annual inflation was 8.5% in England, 4.9% in Wales, 7.8% in Scotland and 7.3% in Northern Ireland.
The ONS reported that annual house price growth is beginning to show signs of slowing across the majority of the UK. Annual house price increases in England were driven by an annual increase in London of 13.0% and to a lesser extent increases in the East (9.9%) and the South East (7.6%).
Excluding London and the South East, UK house prices increased by 6.5% in the 12 months to January 2015. On a seasonally adjusted basis, average house prices fell by 0.2% between December 2014 and January 2015.
In January 2015, prices paid by first-time buyers were 9.7% higher on average than in January 2014. For owner-occupiers (existing owners), prices increased by 7.8% for the same period.
Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), said: “The slowest rate of annual house price growth since March last year will be a relief to anyone concerned that the property market had taken leave of its senses.
“Measures to boost mortgage affordability checks have helped to instil a sense of calm and mean the pace of growth in house prices is looking far more sensible than a year ago.”