The 19-year-old - a product of Barnsley's youth academy - becomes Villa boss Steve Bruce's second signing of the window, following the arrival of midfielder Henri Lansbury from Nottingham Forest last week.
"I'm delighted to have joined Aston Villa," Bree told the club's website. "I've been at Barnsley since I was young and it's helped me develop. I will always be grateful.
"I'm joining a massive club and hopefully I can bring something to this team. Steve Bruce was a big factor in my decision. When I met him I knew it was the right move for me.
"The facilities are great and it'll be nice to get going, get started and see what I can do this season for the team."