The average UK house price fell by 0.6% in January to £290,000, following a drop of 0.4% in December 2022, said the Office for National Statistics.

This pulled back annual house price inflation, from 9.3% in December to 6.3% in January. However, average prices were still up by £17,000 in the year to January 2023.

Nationally, property prices rose over the 12 months to £310,000 (6.9%) in England, £217,000 in Wales (5.8%), £185,000 in Scotland (1.0%) and £175,000 in Northern Ireland (10.2%).

Regionally, the North East saw the highest annual percentage change of all English regions in the 12 months to January 2023 (10%), while London saw the lowest (3.2%).

Iain McKenzie, CEO of The Guild of Property Professionals, said: “The gradual readjustment in house prices continued in January, despite year-on-year levels still showing growth.

“The average home still costs almost £60,000 more than pre-pandemic levels, and there will be many first-time buyers who have been saving since before then that will be hoping prices fall further still.

“Homeowners shouldn’t worry though, as the slowdown in prices is moving at such a glacial pace that homes are unlikely to lose significant value.”

Nick Leeming, chairman of Jackson-Stops, agreed: “Despite economic headwinds, the property market remains on course for the months ahead, with only a marginal decrease in house prices reported despite many predicting a more dramatic decline.

“Sellers have benefited from unprecedented levels of house price growth in recent years and even as this pace softens, low housing stock and stabilising mortgage rates are likely to insulate prices for the foreseeable future.”