ONS: Average house prices up 1.3%

Average house prices in the UK rose 1.3% through January 2020.

However, this is a decrease from 1.7% in December 2019.

Looking at the data from country to country, average house prices with the largest margin in Northern Ireland rose, rising 2.5% to GBP 140,000.

The Bank of England keeps the base rate at 0.1%

It was followed by Wales with an increase of 2% to GBP 162,000 and Scotland with an increase of 1.6% to GBP 152,000.

In England, average house prices rose 1.1% to GBP 247,000 by January 2020.

In addition, Yorkshire, The Humber and West Midlands experienced the highest regional growth over the same period, increasing 3.1% and 2.6%, respectively.

The east of England and the south-east of England recorded the largest decrease, with a decrease of 0.6% and 0.5%, respectively.

Marc von Grundherr, director of Benham and Reeves, said: “At first glance there is no need to panic as prices continue to rise every year.

"Although the monthly price movement is not a good indicator of long-term market health, you will be forgiven for expecting the worst, given that property prices have already fallen in January, especially given that we know what will come as a result of the spread of coronavirus .

“It is certain that market activity will decrease noticeably, and while many in the industry are adapting to the changing landscape through the use of technology, the expected recovery of the Brexit market this year has to wait as it makes room for a corona virus crippling.

“The positive news is that, unlike Brexit or the previous financial crisis, the mood of buyers and sellers cannot continue to function normally.

"As both demand and supply decrease, not just demand, prices will not have the same impact."

Jeremy Leaf, real estate agent in north London, added: “Although the spread of the virus overshadows business as it should be, this comprehensive account of the strength of the UK property market is very interesting.

“It shows what could have been and what could still be, even though the increases are somewhat more modest than the surprise surge of the previous month, as long as the pandemic can be brought under control relatively quickly.

"The on-site visits may have dried up, but inquiries may not. Many who are already fed up with foreclosure clearly hope to act in the short term rather than the long term.

"If this is the case, we don't expect prices to suffer too much if the current lack of listings persists and government support keeps as many in the works as possible."

Karen Noye, Quilter's mortgage expert, said: “UK house price data for January released this morning shows that before the virus changed everyday house prices rose slightly and rose 1.3% over the course of the year.

“This is positive given the uncertainty surrounding Brexit, which has already slowed the economy down, but it is significant that the monthly price change for a property in the UK in January was -1.1% compared to just -0.6 % last year

“The February data is likely to show a further decline from the previous year and could be worse for March and beyond after concerns about the corona virus have really influenced decision making.

“This is a difficult time to predict, but as property prices cooled before the virus, they did not suffer a sharp decline, which shows the resilience of the UK property market.

“There is reason to be optimistic that after the end of this crisis we will experience a strong real estate market again and maybe even a recovery as those who have been living in their homes for so long start to think about fresh accommodation, but a lot will depend on the length the crisis and the depth of a later recession. "