Annual growth eased to 3.0% from 3.4% in December of last year.

Northern Ireland had the strongest annual property price growth in the UK, despite a fall to 5.9% in January, compared with the 7.3% increase in December, with properties in the region now costing an average of £205,473.

London retained the highest average house price in the UK at £548,288, a 2.8% rise from last year.

Industry professionals commented on the latest Halifax HPI

Amy Reynolds, head of sales at estate agency, Antony Roberts:

 “January was busier than normal, with a lot of market appraisals, which bodes well for a busy spring market.

“Increased activity from first-time buyers has helped, with more sales agreed in chains where someone is keen to take advantage of the stamp duty concession before it ends in March.

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“The benefit to the first-time buyer is instant as it is real cash in their pocket, allowing someone to buy who might not have been able to, and the government perhaps needs to consider further stimulus for the market in its Spring statement.

“While all this suggests growing confidence, it’s too soon to say for certain how the market will unfold."

Tomer Aboody, director at MT Finance:

 “While the numbers suggest a confident market, actual growth in prices is minimal as buyers face affordability challenges.

"Reduced interest rates tend to encourage buyers and sellers to be active, as we saw towards the end of last year, so yesterday’s rate cut should help with market confidence.

“The full impact of the Budget has yet to be factored in, so a true indication of where we are would be around spring, when the stamp duty holiday ends."

Mark Harris, CEO at SPF Private Clients: 

“Modest house price growth is being underpinned by borrowing costs which, while softening, remain higher than many borrowers were paying just a few years ago.

“With the Bank of England cutting interest rates this month, and the expectation of further reductions to come, this should encourage borrowers to make their move.”