Latest data from the Office for National Statistics (ONS) has revealed that average UK house prices increased by 3.5% in the 12 months to April 2023, down from 4.1% in the previous month.

The average UK house price was £286,000 in April, which is £9,000 higher than 12 months ago, but £7,000 below the recent peak in September 2022.

Average house prices increased over the 12 months to £306,000 in England (3.7%), £213,000 in Wales (2.0%), £187,000 in Scotland (2.0%) and £172,000 in Northern Ireland (5.0%).

On a regional level, the North East saw the highest annual percentage change of all English regions in the 12 months to April 2023 (5.5%), while London saw the lowest (2.4%).

Malcolm Webb, technical director at Legal & General Surveying Services, said: “Although recent headlines have painted a turbulent picture of the UK housing market, it’s important to put any month-on-month price fluctuations and even annual price movement into context. Homeowners are likely, on average, to stay in their homes for well over 10 years, according to the latest government data, so it makes sense for them to take a longer view on house prices. As the latest ONS data shows, while there have been some fluctuations, the UK housing market has still seen decades of average house price growth.

“For potential buyers, we know that this price growth can pose affordability challenges. The UK’s ongoing supply and demand imbalance, means that there’s a lot of upward pressure on house prices, particularly in certain areas, but this isn’t the case across the whole of the UK. There is a huge amount of regional variation in the UK property market that’s masked when we just focus on average prices and speaking with a local expert can help new buyers take advantage of that.

“What’s most important for buyers is that they find a home that’s right for them. When faced with the rising cost of living it’s natural that many people will weigh-up whether they want to meet some of the additional costs associated with buying a house, such as the price of a home survey. However, it is crucial that buyers don’t skimp on this vital part of the homebuying process. Buying a home is often the biggest financial decision any of us undertake. Arranging a professional survey can ensure that buyers make this decision with as much information as possible and protect them from any unexpected costs or issues further down the line.”

Vikki Jefferies, propositions director at Primis, added: “The figures today are not a surprise given the strain of higher interest rates and unpredictability on the housing market. However, it is a positive sign that house prices still remain well-above pre-pandemic levels, and the downward trend has been much less pronounced than some had predicted at the beginning of the year.

“The main challenge for homebuyers now is a volatile mortgage market, which has seen mortgage rates rise to their highest levels since Q4 2022. With more than 400,000 people seeing their existing fixed deals end between July and September, it is crucial that borrowers seek financial advice as soon as possible to ensure they are getting the best deal.

“Given the upcoming Consumer Duty deadline, brokers must recognise that it is essential to understand the individual needs of every client to find the most suitable product for them during this period. Mortgage networks’ training and workshops can provide invaluable support for brokers in managing customer and lender relations at this time.”