The average UK house price has risen above \u00a3300,000 for the first time after jumping by 0.7% month-on-month, Halifax has reported.<\/p>\n
On an annual basis, property values increased by 1.0% typically in January, taking the average price to \u00a3300,077.<\/p>\n
Amanda Bryden, head of mortgages at Halifax, said: \u201cThe housing market entered 2026 on a steady footing, with average prices rising by 0.7% in January, more than reversing the 0.5% fall seen in December.<\/p>\n
\u201cAnnual growth also edged higher to 1.0%, pushing the cost of the typical UK home above \u00a3300,000 for the first time.<\/p>\n
\u201cWhile that\u2019s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers.\u201d<\/p>\n
The last time the monthly jump in house prices was higher was in November 2024, when it was 1.1%, Halifax said.<\/p>\n
Ms Bryden added: \u201cBroader economic conditions continue to provide some support. Wage growth has been outpacing property price inflation since late 2022, steadily improving underlying affordability.<\/p>\n
\u201cThat\u2019s a positive trend for buyers, and the long-term health of the market.<\/p>\n
\u201cAnd we\u2019re now seeing more mortgage deals below 4%. If inflation continues to ease, there should be further gradual reductions as the year goes on.<\/p>\n
\u201cAll in all, we still think house prices are likely to edge up between 1% and 3% this year.\u201d<\/p>\n
Although the UK\u2019s average property price is now above \u00a3300,000, growth in recent years has been relatively modest, following the sharp increases seen during the coronavirus pandemic, the report said.<\/p>\n
Over the past three years, property prices have risen by 5.7%, or around \u00a316,000 on average, as higher interest rates and stretched affordability have kept growth muted.<\/p>\n
By contrast, the three years from 2020 to 2023 saw prices climb by nearly 19%, or over \u00a344,000 on average, driven by low mortgage rates and the \u201crace for space\u201d as people looked for bigger properties and adjusted to more flexible working patterns.<\/p>\n
Ms Bryden said: \u201cFor first-time buyers the headline numbers can seem daunting, but it\u2019s important to remember that most are looking at smaller properties in areas that reflect their budget. Many locations offer far more accessible price points, especially in northern regions where homes can often be found for under \u00a3200,000.\u201d<\/p>\n
\u201cAffordability is still a challenge, but stronger wage growth and falling mortgage rates have helped relieve some of the pressure in recent years. We expect that improvement to continue in 2026, meaning that with the right support and advice, home ownership should become a realistic prospect for more would-be buyers.\u201d<\/p>\n
Tom Bill, head of UK residential research at Knight Frank, said: \u201cMortgage lenders have pushed their rates higher in recent weeks as the chances of multiple (Bank of England base 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.\u201d<\/p>\n
Iain McKenzie, chief executive of The Guild of Property Professionals, said: \u201cAlthough inflation\u2019s recent uptick has delayed further base rate cuts, the overall direction for interest rates and wages continues to improve affordability.\u201d<\/p>\n
He added: \u201cLooking ahead, we expect this momentum to carry through the year, with sales volumes gradually picking up. Price growth is likely to remain measured, however, as higher stock levels give buyers more choice and keep a lid on rapid rises. For both buyers and sellers, 2026 is shaping up to be a more balanced and active market.\u201d<\/p>\n
Jason Tebb, president of OnTheMarket, said: \u201cPost-Budget clarity has given the housing market a boost, with buyers and sellers who put moves on hold resolving to press ahead.\u201d<\/p>\n
Jeremy Leaf, a north London estate agent said: \u201cThere is no question now that the housing market is on the move.\u201d<\/p>\n
James Nightingall, founder of property search service HomeFinder AI, said: \u201cJanuary\u2019s property market was boosted by improved buyer and seller confidence but the Bank of England\u2019s recent decision not to cut interest rates could dampen demand.\u201d<\/p>\n
Nathan Emerson, chief executive of property professionals\u2019 body Propertymark, said: \u201cAs 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.\u201d<\/p>\n
Karen Noye, a mortgage expert at wealth manager Quilter said: \u201cCrossing the \u00a3300,000 threshold will be welcome news for existing homeowners, but it\u2019s yet another nail in the coffin for first\u2011time buyers already battling stretched affordability.\u201d<\/p>\n
Here are average house prices in January and the annual change, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transaction data):<\/p>\n
East Midlands, \u00a3246,433, 0.6%<\/p>\n
Eastern England, \u00a3332,366, minus 1.2%<\/p>\n
London, \u00a3538,600, minus 1.3%<\/p>\n
North East, \u00a3181,198, 1.2%<\/p>\n
North West, \u00a3244,329, 2.1%<\/p>\n
Northern Ireland, \u00a3217,206, 5.9%<\/p>\n
Scotland, \u00a3221,711, 5.4%<\/p>\n
South East, \u00a3385,086, minus 1.6%<\/p>\n
South West, \u00a3303,625, minus 1.6%<\/p>\n
Wales, \u00a3228,415, 0.5%<\/p>\n
West Midlands, \u00a3261,817, 0.4%<\/p>\n
Yorkshire and the Humber, \u00a3217,516, 0.9%<\/p>\n","protected":false},"excerpt":{"rendered":"The average UK house price has risen above \u00a3300,000 for the first time after jumping by 0.7% month-on-month,…\n","protected":false},"author":2,"featured_media":283743,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,136777,46563,61,60,12455,2443,9036,4381],"class_list":{"0":"post-283742","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-halifax","11":"tag-house-prices","12":"tag-ie","13":"tag-ireland","14":"tag-mortgage","15":"tag-northern-ireland","16":"tag-scotland","17":"tag-wales"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/283742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=283742"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/283742\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/283743"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=283742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=283742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=283742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}