Annual house price growth eased to 4.7% in February in England and Wales which still saw the average home sell for a record £379,244, data from the e.surv Acadata House Price Index reveals.

The latest data shows that February’s rise is 1.1% down from the 5.8% seen in January.

It represents the sixth month in succession in which the annual rate of growth has slowed with e.surv states is “clear evidence of a sustained downturn”.

Since the start of the pandemic in March 2020, prices to January have risen by nearly 21%, which contrasts with the increase in general inflation of 14.9% over the same period.

On a monthly basis, prices in February increased by 0.5%.

Looking at the last 12 months, February’s 0.5% increase was only exceeded on three occasions (July – September), and only twice has the monthly change been negative.

Acadata senior analysts John Tindale and Peter Williams suggest that the reality of the housing market in England and Wales is that it is “underpinned by a continuing shortage in supply, whether in terms of new or existing homes on the market”.

“This is in conjunction with a steady demand for homes to buy, either from newly formed households leaving parental homes, or from the rental markets where increasing rents may trump any reservations about falling prices.”

“The froth generated by tax reductions or by the race for space may have largely abated, but the underlying fundamental demand remains.”

e.surv director Richard Sexton comments: “It’s no surprise that property prices reflect the increase in the cost of mortgage finance. However, while there have been reports of transactions, mortgage approvals and asking price reductions, we find evidence that prices continue to grow albeit at a much-reduced rate.”

“We should remember that the right kind of stock remains in short supply and buyers still need and want to move. Life events are the backbone of the housing market.”

“We remain to see if any further fiscal support will be given to the housing market in the budget next week, but any stimulus will further support prices.”

“Inflation is slowly abating for now which will ease the pressures on affordability and some lenders, who possibly over-corrected their affordability calculations when the cost-of-living crisis first began, are recalibrating their models to accommodate more business.”