Ashfield house prices fell below East Midlands average at the start of the year

Figures from the Office for National Statistics (ONS) show the average Ashfield house price in the year to January was £188,302 – a 2.3 per cent decrease on December.

It was below the average across the East Midlands, where prices decreased by 0.4 per cent.

The drop in Ashfield does not reverse the longer-term trend in the area, which has seen property prices in the area grow by 3.8 per cent over the last year.

It means the area ranked 22nd among the East Midlands’s 35 local authorities for annual growth, with the average price in Ashfield rising by £6,800 over the past year.

Across the UK, average house prices in January increased slightly on the month before, and have accelerated by 4.9 per cent over the past year.

Separate figures from the ONS show inflation fell to 2.8 per cent in February – stronger than analysts had predicted.

David Hollingworth, associate director at L&C Mortgages, said the slowing in inflation ‘can have positive implications for mortgage rates if it helps to boost the market’s outlook for interest rate movements’.

However, he warned that the rate of inflation is ‘likely to accelerate again in the next few months’.

Mark Eaton, chief operating officer at lender April Mortgages, said the drop in the inflation rate ‘will not immediately increase buyers' ability to save for a house deposit’.

And Tom Bill, head of UK residential research at Knight Frank, cautioned: "House prices should continue to rise faster in relatively more affordable parts of the country."