House prices fall 1.1% in January: UK HPI

The data shows that average house prices increased by 1.3% over the year to January, down from 1.7% in December 2019.

Yorkshire and The Humber was the English region with the highest annual house price growth, with prices increasing by 3.1% over the year. This was followed by the West Midlands, increasing by 2.6%.

The lowest annual growth was in the East of England, where prices decreased by 0.6% over the year to January 2020, followed by the South East of England where prices fell by 0.5%.

Director of Benham and Reeves, Marc von Grundherr, commented: “On the face of it, there is certainly no need to panic with prices continuing to climb annually. However, while monthly price movement isn’t a great indicator of long-term market health, you’d be forgiven for anticipating the worst with property values already dropping in January, particularly given the fact we know what is to come as a result of the spread of coronavirus.

"It’s certain we are going to see a notable reduction in market activity and while many in the industry are adapting to the changing landscape through the use of technology, the Brexit market bounce expected this year will have to wait as it gives way to a coronavirus crippling.

"The positive news is that unlike Brexit or the previous financial crisis, buyer and seller sentiment remains, they are just unable to transact as normal. So with both demand and supply reducing instead of just demand, prices aren’t going to take the same sort of hit. What it does mean, is that the housing market spring continues to coil once again, waiting for the day we can resume normality and for the floodgates of market activity to reopen."