Average UK house prices have exceeded £300,000 for the first time, reaching £300,077 in January, according to Halifax. This marks what the lender calls a significant “milestone” for the housing market. Prices rose 0.7% in January, reversing a 0.5% fall in December, and are now 1% higher than a year ago.
Despite this rise, Halifax notes that wage growth has outpaced house price inflation since 2022, which is gradually improving affordability for buyers. However, experts warn that the £300k threshold is daunting for first-time buyers. Mortgage specialist Karen Noye describes it as “yet another nail in the coffin” for those already struggling with stretched affordability, especially since mortgage rates remain well above the ultra-low levels of the previous decade.
Market Conditions
• Lenders have recently been competing for first-time buyers by offering products requiring smaller deposits.
• The Bank of England has hinted that interest rate cuts may come later this year, which could help reduce mortgage rates further.
• More mortgage deals are now appearing below 4%, and Halifax expects house prices to edge up 1–3% over 2026.
Comparison With Other Indices
Halifax’s average price figure is higher than other surveys:
• Nationwide recently reported an average of £270,873.
• ONS data showed an average of £271,000 as of November
This difference reflects the varying methodologies used by lenders.
Estate agents report that:
• Prices are broadly stable, with modest growth where supply is tight.
• Buyer activity has strengthened since the start of the year.
Experts expect any boost from future rate cuts to be gradual, supporting affordability rather than triggering a sharp rise in prices. Overall, the market is described as stable but not exuberant, with enthusiasm still muted.
Source The BBC
