UK house prices have risen for the first time since June last year, marking a 1.8% annual increase in March following a 0.2% decline in February, according to official figures released on Wednesday by the Office for National Statistics (ONS). This increase indicates signs of recovery in Britain’s housing market, which had slowed down due to last year’s surge in borrowing costs.

Private rents also showed a notable change, increasing by 8.9% in the year to April. This represents the first slowdown in rent hikes for 2024, down from a 9.2% rise in the 12 months to March.

The recent decline in inflation has bolstered household incomes and raised hopes for potential interest rate cuts. However, new data showing a smaller-than-expected drop in British consumer price inflation has led investors to reassess the likelihood of the Bank of England cutting interest rates in June.