UK House Price Growth Surpasses Expectations

The Halifax House Price Index showed UK house prices rose 1% year-on-year in January 2026, accelerating from an upwardly revised 0.4% gain in December, marking the largest increase in three months. The average UK home surpassed £300,000 for the first time, reaching £300,077. On a monthly basis, prices rose 0.7%, more than the expected 0.1% growth, and reversing a 0.5% fall in December. Amanda Bryden, Head of Mortgages at Halifax, said the market entered 2026 on a steady footing, with the monthly rise reflecting resilience despite affordability challenges. Stronger wage growth and more mortgage deals below 4% are supporting buyers, and Halifax expects prices to edge up 1%–3% in 2026. Regionally, Northern Ireland led growth at 5.9%, followed by Scotland (5.4%) and the North West (2.1%). Southern regions, including London, the South East, South West, and Eastern England, saw annual declines of over 1%, reflecting higher borrowing costs and affordability pressures.

The Halifax House Price Index showed UK house prices rose 0.3% year-on-year in December 2025, slowing from a revised 0.6% gain in November and below expectations of a 1.1% increase. This marks the smallest growth since a decline in November 2023. On a monthly basis, prices declined 0.6%, following a 0.1% drop, missing forecasts for a 0.2% rise. The average house price fell by £1,789 to £297,755, the lowest level since June. Amanda Bryden, Head of Mortgages at Halifax, said the softer end to 2025 likely reflected late-year uncertainty that should begin to ease, while overall market activity remained resilient and broadly in line with pre-pandemic levels. She added that lower mortgage rates and a broader range of high loan-to-value products should support demand into 2026, with Halifax forecasting house price growth of 1%–3%. Regionally, Northern Ireland led gains at 7.5%, followed by Scotland (3.9%) and Wales (1.6%).

The Halifax House Price Index in the UK rose 0.7% year-on-year in November 2025, easing from 1.9% in October and marking the slowest growth since March 2024. The average property price edged up to a record £299,892, a monthly increase of just £139. On a monthly basis, prices were flat, following a 0.5% rise in October and missing expectations of a 0.2% gain. The slowdown largely reflects stronger price growth a year earlier. Amanda Bryden, Head of Mortgages at Halifax, said the market has remained one of the most stable in the past decade, with prices steady despite Stamp Duty changes and Autumn Budget uncertainty. She noted that affordability has improved, with mortgage costs as a share of income now at their lowest in about three years. Regionally, Northern Ireland led annual growth at +8.9%, followed by Scotland (+3.7%) and Wales (+1.9%). In England, the North West recorded the strongest gain at +3.2%, with the North East up 2.9%.