- Prior -0.6%; revised to -0.5%
- House price index +1.0% y/y
- Prior +0.3%; revised to +0.4%
UK house prices nudged up slightly to start the new year, with the average property price now seen at £300,077. For some context, that is the first time that the figure has breached the £300,000 mark. And once again, it further exemplifies the more resilient showing in the UK housing market since last year already.
Halifax notes that:
"The 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 December. Annual growth also edged higher to +1.0%, pushing the cost of the typical UK home above £300,000 for the first time.
“While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers.
“Broader economic conditions continue to provide some support. Wage growth has been outpacing property price inflation since late 2022, steadily improving underlying affordability. That’s a positive trend for buyers, and the long-term health of the market.
“And 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.”
