Annual house price growth has slumped to 1.7 per cent in January 2019 – the lowest rate since 2013.
The latest House Price Index from ONS, using data from HM Land Registry, out today (March 20), shows the average UK house price was £228,000 in January 2019, an increase of 1.7 per cent over the year, but down from a 2.2 per cent annual growth in December 2018.
This is the lowest annual rate since June 2013 when it was 1.5 per cent, according to ONS.
UK house prices have weakened over the past two and a half years primarily in the south and east of England.
The lowest annual growth was in London, where prices fell by 1.6 per cent over the year to £472,000, down from a decrease of 0.7 per cent in December 2018.
However, London remains the most expensive place to purchase a property followed by the south east at £321,000.
London was followed by the east of England where prices fell 0.2 per cent over the year to an average of £288,000, its first annual fall since October 2011.
The north east continued to have the lowest average house price at £125,000 and was the only English region yet to surpass its pre-economic downturn peak.
Meanwhile the East Midlands showed the highest annual growth with prices increasing by 4.4 per cent in the year to January 2019, followed by the West Midlands, at 4 per cent.
The average house price in England was £245,000 in January, an increase of 1.5 per cent over the year, down from 1.9 per cent in December 2018.
House prices in Scotland grew at a slower rate than other countries of the UK, increasing by 1.3 per cent in the year to January 2019, down from 2 per cent in the year to December 2018, with the average house price of £149,000.
Conversely house price growth was strongest in Wales, increasing by 4.6 per cent in the year to January 2019 with the average house price standing at £160,000.
ONS stated this was driven by strong growth in south east Wales, linked to the abolition of the Severn Bridge tolls.
Northern Ireland house prices increased by 5.5 per cent over the year to December 2018, remaining the cheapest UK country to purchase a property with the average house price standing at £137,000.
Kevin Roberts, director of Legal & General Mortgage Club, said: "Today’s figures tell a similar story to that of the last 12 months as house price rises continue at a more subdued level.
"As far as the mortgage market is concerned, however, it’s not doom and gloom at all. The current low-interest climate coupled with increased lender innovation means we’re seeing more and more buyers take their first steps, with the number of first-time buyers hitting a 12-year high last year."