The average UK house price rose 1% in the year to January, according to new data published by Halifax.
Falling mortgage rates are helping prices, with the Halifax noting that many products are now available at rates less than 4%.
“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.”
Although the increase in house prices will be welcomed by homeowners, the pace of growth is still tepid, and deep-rooted concerns about the structure of the housing market persist, especially with many first-time buyers struggling to get on to the market.
“Today’s modest rise in UK house prices points to underlying resilience, but momentum remains constrained by affordability pressures and a ‘higher for longer’ interest rate backdrop,” said Daniel Austin, CEO and co-founder at ASK Partners.
“While recent rate cuts signal easing inflation, they are unlikely to transform market conditions overnight. Mortgage pricing has improved, yet buyer and developer confidence remains fragile following a Budget that offered little direct stimulus for housing.”