House prices rise 0.3% in January – Nationwide

Annual house prices grew 1% in January, with values rising 0.3% on a month-on-month basis after seasonal adjustment.

According to Nationwide, the modest uplift marks a reversal from December, when yearly growth slowed to 0.6%.

The average house price, on a non-adjusted basis, is £270,873, slightly below the £271,068 recorded a month earlier.

Robert Gardner, Nationwide’s chief economist, said: “Housing market activity also dipped at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget.

“Nevertheless, the number of mortgages approved for house purchase remained close to the levels prevailing before the pandemic.”

Affordability is improving because wage growth is outpacing house price growth and mortgage rates are falling.

Property sector reaction

Nathan Emerson, the CEO of Propertymark, said: “It’s encouraging to see the housing market gathering pace as we head further into 2026.

“We have witnessed growing consumer confidence over the last 12 months, more competitive mortgage deals being offered by many lenders, and an increase in homes being placed for sale.”

Karen Noye, a mortgage expert at Quilter, said: “We are unlikely to see a period of rapid house price growth in the near future.

“Affordability constraints remain a hard limit on how far prices can run ahead, even as borrowing costs begin to ease.

“That said, this looks less like a market losing momentum and more like one in a holding pattern.”

Tom Bill, the head of UK residential research at Knight Frank, said: “House prices edged higher in December as certainty following the Budget triggered a flurry of deals before Christmas.

“However, mortgage approvals in the same month were 9% below the five-year average, showing that demand is still fragile.”

Tanya Elmaz, the director of sales at Together, said: “House prices have risen, signalling a renewed sense of momentum as the year gets underway.

“Although mortgage rates have fallen gradually over the past year, buyer confidence had remained subdued, particularly towards the end of 2025 amid uncertainty following the Autumn Statement.

“We would expect the property market to gather pace in the months ahead if inflation continues to ease and the Bank of England maintains its rate-cutting trajectory.”