The annual average sale price of completed home transactions using cash or mortgages in England and Wales in January 2024 fell by £13,400, or 3.6%, to £361,029, according to e.surv.

This reduction followed a 3.9% fall in the annual rate seen in a revised December figure.

On a monthly basis, house prices have risen, in this instance by some £620, or 0.2%, in January 2024, now stand at a level last seen in February 2022.

This was only the second occasion in the past 15 months in which prices increased by more than 0.1%.

In December, for the fourth month in succession, the North East saw the highest rate of price growth; the area has been in one of the top five spots for regional price growth for 10 of the last 12 months.

It is likely that it has held this position as a result of having the lowest average house price of all the 10 GOR areas in England and Wales, at £197,176, compared to second placed Wales, where the average price is £237,880.

Richard Sexton, director at e.surv, said: “House prices in England and Wales saw a slight increase this month, rising by £620 (0.2%) to reach a level last seen in February 2022.

“This marks only the second time in the past 15 months that prices have grown by more than 0.1%.

“The three areas with an overall positive change in growth rates were the North East, Greater London and the South West.

“In December, for the fourth month in succession, the North East has the highest rate of price growth of all the ten GOR areas.”

He added: “Our own experience is that market sentiment is improving. The combination of better news with regard to mortgage approvals in December and the holding of the bank base rate at 5.25% will encourage buyers.

“We, of course, have a budget in less than a month’s time and all parties are looking at how they can better support the housing market.

“Housing remained fifth in the Ipsos Mori issues index, but its score edged upwards, suggesting that it is becoming more important to voters and this may be significant when it comes to the allocation of any public investment decisions.”