House price growth decelerated last month

House price growth in the UK has decelerated, with Nationwide Building Society reporting a 4.1% annual increase as of January, down from 4.7% in December. Despite rising average earnings, high mortgage rates are hindering buyers. The number of homes available is at a seven-year high, giving buyers leverage in negotiations. The average property price remains just below the peak of £273,751 reached in August 2022, at £268,213. Robert Gardner, chief economist at Nationwide, said: "Affordability remains stretched by historic standards," highlighting that first-time buyers now pay five times their salary for a home, down from 5.8 times in mid-2022. Nationwide predicts a potential price increase of 2% to 4% by year-end, but market caution persists due to the abundance of properties available. 

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