House prices top £300,000 for the first time – Halifax

The average UK house price rose in January, with prices climbing 0.7% after they had dropped by 0.5% in December, Halifax reports.

Its latest index puts the average home at £300,077, the first time the figure has surpassed £300,000.

Annual growth also strengthened, edging up to 1% from 0.4% in December.

Halifax says the market has begun the year with renewed stability, despite lingering affordability pressures and issues with higher borrowing costs.

The lender’s head of mortgages, Amanda Bryden, said: “We’re now seeing more mortgage deals below 4%.

“If inflation continues to ease, there should be further gradual reductions as the year goes on.

“All in all, we still think house prices are likely to edge up between 1% and 3% this year.”

Regional house prices

Halifax says that house prices have risen by 5.7% over the past three years, which is around £16,000.

That contrasts with the period between 2020 and 2023, when prices surged by 19%, adding more than £44,000 to values.

Northern Ireland leads annual growth at 5.9%, taking the average price to £217,206.

Scotland follows with 5.4%, lifting values to £221,711.

Wales posted more modest movement, with prices rising 0.5% year on year to £228,415.

Within England, the North West saw a 2.1% annual increase to £244,329, while the North East rose 1.2% to £181,198.

The South East, South West, London and Eastern England all recorded annual falls higher than 1%.

Property sector reaction

Jason Tebb, the president of OnTheMarket, said: “Post-Budget clarity has given the housing market a boost, with buyers and sellers who put moves on hold resolving to press ahead.

“Six interest rate reductions in the past 18 months have helped ease affordability and encourage activity.

“While the Monetary Policy Committee voted to hold rates this month, the vote was narrower than expected suggesting further reductions to come, which should give those planning to move this year some confidence.”

Nathan Emerson, the CEO of Propertymark, said: “As we progress further into the year, it is encouraging to see the housing market gathering pace.

“We are witnessing an increased flow of homes being brought to market, alongside growing confidence among buyers and sellers as they approach the moving process.

“Taking a broader view, lenders are also becoming increasingly competitive, expanding their range of mortgage products and improving access for those planning their next home move.”

Verona Frankish, the CEO of Yopa, said: “The latest Halifax data reinforces building evidence that the market has found a more stable footing at the start of 2026, with homebuyers returning in greater numbers after the seasonal slowdown seen in December.

“These figures also suggest that they are doing so with renewed purchasing power, with the increase seen in mortgage approved house prices being driven by improvements to the lending landscape.”

Tom Bill, the head of UK residential research at Knight Frank, said: “House prices rose in January as decisions delayed ahead of the November Budget were activated either side of Christmas.

“However, momentum has since faded and mortgage approvals are running 9% below the five-year average, which shows demand is on a knife-edge.

“Mortgage lenders have pushed their rates higher in recent weeks as the chances of multiple Bank Rate cuts this year recede, although a reduction next month seems likely.

“As inflation comes under control, we expect demand and activity to steadily improve over coming months, although a challenge to the Prime Minister’s position could derail that recovery.”