According to the Nationwide House Price Index, UK house prices rose in January by 0.7%. This brings the annual rate of change to -0.2% compared with one year ago.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “There have been some encouraging signs for potential buyers recently with mortgage rates continuing to trend down. This follows a shift in view amongst investors around the future path of Bank Rate, with investors becoming more optimistic that the Bank of England will lower rates in the years ahead.”

He added that while a rapid rebound in activity or house prices in 2024 appears unlikely, the outlook is looking a little more positive. “The most recent RICS survey suggests the decline in new buyer enquiries has halted, while there are tentative signs of a pickup in the number of properties coming onto the market.” Monthly mortgage payments, however, remain high as a proportion of average income.

Nicky Stevenson, Managing Director at national estate agent group Fine & Country commented: “The housing market has started the year strongly, and increasing buyer demand has pushed average prices up in the first month of the year. Mortgage approvals continue to rise month on month, as buyers return to the market at a steady rate. Many of them have been enticed to begin or resume their property search as a result of falling interest rates.”