According to the Halifax House price index, house prices in the UK jumped 0.7% in January, reversing December’s 0.2% decline and surpassing analysts’ expectations of a 0.2% increase.

Key Figures:

• Average UK house price: £299,138 – a new record high.
• Annual house price growth: 3%, down slightly from 3.4% in December – the slowest annual rate since July 2024.

Market Drivers:

• Strong mortgage demand, despite affordability challenges.
• Anticipation of a stamp duty rise may be accelerating purchases, especially among first-time buyers.
• Resilience of the housing market despite geopolitical uncertainty and consumer confidence concerns.

Expert View:

Amanda Bryden, Head of Mortgages at Halifax, noted:

“Affordability is still a challenge, but demand remains strong, and lending continues to grow. Other key indicators remain positive for the housing market.”

Looking Ahead

With mortgage rates stabilising and economic uncertainty persisting, the coming months will test whether house price growth can be sustained or if affordability constraints will cool the market.