UK house prices rose by 7.2% in the year to February 2015, down from 8.4% in the year to January 2015, the Office for National Statistics (ONS) has reported.
House price annual inflation was 7.4% in England, 1.1% in Wales, 6.4% in Scotland and 14.2% in Northern Ireland.
Annual house price growth is showing signs of slowing across the majority of the UK.
Annual house price increases in England were driven by an annual increase in the East of 10.7% and in London of 9.4%.
Excluding London and the South East, UK house prices increased by 5.9% in the 12 months to February 2015. On a seasonally adjusted basis, average house prices increased by 0.6% between January and February 2015.
In February 2015, prices paid by first-time buyers were 7.4% higher on average than in February 2014. For owner-occupiers (existing owners), prices increased by 7.2% for the same period.
Stephen Smith, director of Legal & General Mortgage Club and Housing, said: “House price growth has slowed since the end of 2014. Although it might not seem like it, this is actually good news for the housing market, as price rises that are too sharp can prevent people from getting on the property ladder.
“Ideally, house prices would grow at roughly the same rate as inflation, so that prices don’t rise faster than potential buyers can save a deposit. One way to achieve this goal is to build more houses, so that demand keeps pace with supply.
“Currently we need around 200,000 new homes to be built each year. Unless we can meet this target, prices will continue to rise rapidly, making it harder for many to get a foot on the ladder.”