House prices fell in January according to the latest figures from the Office of National Statistics. The ONS reported that, on a seasonally adjusted basis, the average house price fell by 0.2 per cent between December 2014 and January 2015.
However, prices are still growing on an annual basis despite showing signs of slowing across the majority of the UK. In the year to January 2015, UK house prices increased by 8.4 per cent. This was down from 9.8 per cent in the year to December 2014.
House price annual inflation was 8.5 per cent driven by an annual increase in London of 13.0 per cent and to a lesser extent increases in the East (9.9 per cent) and the South East (7.6 per cent).
First-time buyers are the hardest hit by price increases. In January 2015, prices paid by first-time buyers were 9.7 per cent higher on average than in January 2014. For owner-occupiers (existing owners), prices increased by 7.8 per cent for the same period.