- Prior -0.4%
UK house prices inched a little higher to start the year after a bit of a drop at the tail end of 2025. The house price index (seasonally adjusted) moved up in January but the average house price (non-seasonally adjusted) was seen down slightly from £271,068 to £270,873. Again, that is to do with seasonal adjustment issues.
The UK housing market can be summed up by one word last year, that being resilience. And perhaps 2026 will be the year of recovery, if anything else. Nationwide notes that:
“The start of 2026 saw a slight pick-up in annual house price growth, which rose to 1.0% in January, after slowing to 0.6% in December. Prices increased by 0.3% month on month in January, after taking account of seasonal effects.
“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.
“Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year (and explored further below) is maintained."
