According to the report from the Office for National Statistics (ONS), average house prices rose by 4.9% per year in January after increasing by 4.6% per year in December. This was the 11th price increase in a row and the strongest increase since February 2023. Economists expected an increase of 4.4%. On a non-seasonally adjusted basis, average house prices increased by 0.2% m/m compared with a decrease of 0.1% in the same period 12 months ago. On a seasonally adjusted basis, average house prices increased by 0.7% between December 2024 and January 2025.
The ONS said that the average house price rose to 269,000 pounds from 256,000 pounds in January 2024. Average house prices increased in England (+4.8%, to 291,000 pounds), in Wales (+6.0%, to 210,000 pounds) and in Scotland (+4.6%, to 187,000 pounds).
Separate data showed that in February, the average UK private rent rose by 8.1% per year, to 1,326 pounds, after an increase of 8.7% per year in January. Average rents increased to 1,381 pounds (+8.3%) in England, 785 pounds (+8.5%) in Wales, and 998 pounds (+5.8%) in Scotland. In England, private rents annual inflation was highest in London (9.9%) and lowest in Yorkshire and The Humber (4.8%), in the 12 months to February 2025.