The Office for National Statistics has reported that UK average house prices rose by 7.5% over the year to January 2021, down from 8.0% in December 2020.
Average house prices increased over the year in England to £267,000 (7.5%), in Wales to £179,000 (9.6%), in Scotland to £164,000 (6.9%) and in Northern Ireland to £148,000 (5.3%).
The North West was the English region which saw the highest annual growth in average house prices (12.0%), while the West Midlands saw the lowest (4.7%).
George Franks, co-founder of London-based estate agents, Radstock Property, said: “The average annual growth rate may have dropped off slightly in January but the market was still firing on all cylinders in the first month of 2021.
“The small decline in the annual rate of growth likely reflects a cooling-off in demand as prospective buyers recognised that they would probably miss out on the initial Stamp Duty holiday deadline.
“As to where the market is at currently, two years of property market activity have effectively played out in nine months.
“As life slowly returns to normal, the property market is likely to take a transactional rest later in the year but we still expect a decent level of activity in 2021.
“Cheap money, low supply and the government guaranteeing 95% loan-to-value mortgages up to £600,000 will keep transaction levels ticking along.
“Overall, we expect average house prices in 2021 to rise by 2% to 4% depending on property type and location.”