However, Scott Jack, regional development director at Walker Fraser Steele, noted: “It is only when we look under the bonnet of the national headline that we can see there has been considerable variation at a local level.”

The analysis showed that 16 local authorities saw rising prices over the year, mirroring the pattern in December – with Midlothian leading the mainland at a 9.9% annual growth rate – and another 16 experienced price falls “ranging from +9.7% in Inverclyde to -4.2% in Moray”.

The City of Edinburgh witnessed the largest weighted fall in prices annually, primarily driven by declines in the terraced and semi-detached housing segments, despite increases in detached homes and flats.

January’s transaction figures paint a picture of a market where home movers were acting out of necessity rather than discretion, potentially influenced by mortgage rates. Total transactions in 2023 marked the lowest level since 2013, underscoring the impact of pricing on buyer sentiment.

Mr Jack added: “On an annual basis there is a slightly larger movement in values, with prices in January 2024 having increased by £520, or +0.2%, compared to a fall in December 2023 of -£670, or -0.3%, over the year.

“This positive movement may herald a slightly broader improvement as lower mortgage rates, alongside expectations of Bank of England interest rate cuts in the second half of the year, should help buyer confidence in the short term.”