Average house prices fell to £299,000 in England and £213,000 in Wales but rose 4.8pc in Scotland and 1.4pc in Northern Ireland.

Tomer Aboody, of property lender MT Finance, said the housing market was likely to pick up in the coming months as a result of stabilising prices.

He said: “As property prices are stabilising and slowly creeping back up again, increased activity in the market is likely in coming months with inflation once again falling and a reduction in interest rates potentially on the way.”

It comes ahead of tomorrow’s Bank Rate decision from the Bank of England’s Monetary Policy Committee.

The Bank Rate has been held at 5.25pc since August following 14 consecutive rises from December 2021, but following the announcement that the economy is on track to hit the 2pc inflation target in April.

Verona Frankish, chief executive of Yopa, said: “With this morning’s inflation numbers coming in slightly better than expected, all eyes will be fixed on the Bank of England this week in anticipation of a base rate reduction.”

A Department for Levelling Up, Housing and Communities spokesman said: “We recognise the cost-of-living pressures tenants are facing, and our landmark Renters Reform Bill offers a new, fairer deal for tenants and landlords. The most recent data shows the size of the private rented sector has doubled since 2004, peaking in 2016 and has remained roughly stable since.”