The average price of a UK home has surpassed £300,000 for the first time, according to Halifax, with prices rising 0.7% month on month in January – the fastest growth since November 2024. The record £300,077 figure comes after a sluggish end to 2025, when prices fell 0.5% in December (revised from an earlier estimate of 0.2%).
On an annual basis, prices grew 1%. However, Nationwide, which also tracks house prices, estimates the average cost at a much lower £270,873, reflecting differences in their data. Both lenders base their figures on mortgage approvals, excluding cash and buy-to-let sales.
Amanda Bryden, head of mortgages at Halifax, called the milestone “undoubtedly a milestone figure” but noted that “affordability remains a challenge for many would-be buyers.” She predicted that house prices would “edge up between 1% and 3% this year,” while Nationwide forecasts a 2% to 4% rise.
Regional variations persist: Northern Ireland led with 5.9% annual growth, followed by Scotland at 5.4%. In England, the north-west saw the strongest rise at 2.1%, while Wales recorded only 0.5% growth. The Bank of England held interest rates at 3.75% last week, despite a 5-4 vote split that analysts say suggests further cuts ahead.
Mortgage expert Karen Noye of Quilter said stability has returned “but enthusiasm has not,” adding that expected future rate cuts would provide “gradual support for affordability rather than a sudden jump in prices.” RBC Capital Markets analyst Anthony Codling credited rising wages, falling mortgage rates, and easing lending limits for the price growth.
