UK House Prices Show Small Decline, Rents Reach Record Highs in Latest Data

**UK House Prices Show Mixed Results in Latest ONS Report**

The latest figures from the Office for National Statistics (ONS) have revealed a mixed picture for the UK housing market, with the average house price falling by 0.2% in the 12 months to February. This marks a slowdown from the previous 1.3% decrease in the 12 months to January.

According to the ONS, the average house price across the UK now stands at £281,000. In England, average house prices fell to £298,000 (a 1.1% decrease), while in Wales they dropped to £211,000 (a 1.2% decline). However, Scotland saw an increase in average house prices to £188,000, representing a 5.6% rise.

The rise in Scotland’s inflation rate was described by the ONS as reflecting the average house price falling last year rather than recent increases. Meanwhile, in Northern Ireland, average house prices increased by 1.4% to £178,000 in the year to the fourth quarter of 2023.

On the rental side, private rents in the UK saw a significant increase of 9.2% in the 12 months to March, up from 9.0% in the previous 12 months to February. The average private rent in Britain now stands at £1,246, with England seeing a typical rent of £1,285 in March, representing a 9.1% increase from the previous year.

In Wales, rent increases remained steady at 9.0%, with the average private rent at £727 in March. Scotland saw a 10.5% increase in private rents, reaching £947, while Northern Ireland experienced a 10.1% increase in rents up to January 2024.

Economists and industry experts have weighed in on the latest data, with some suggesting that the slight fall in house prices could indicate a turnaround in the housing market correction. However, concerns remain about the impact of rising rental prices on households already facing cost-of-living pressures.

The figures were released alongside data showing a decrease in Consumer Prices Index (CPI) inflation to 3.2% in March, from 3.4% in February. While this was the lowest level of inflation since September 2021, some experts raised concerns about the potential delay in rate cuts by the Bank of England.

Overall, the latest ONS report paints a complex picture of the UK housing market, with varying trends across different regions and sectors. As the market continues to evolve, experts will be closely monitoring the impact on buyers, sellers, and renters in the coming months.