UK House Prices Climb to Record High in January

UK Housing Market Starts 2026 with Price Gains
Average house prices in the United Kingdom climbed above £300,000 in January 2026, according to the latest data from mortgage lender Halifax, marking a new historic high for the British property market. Prices rose approximately 0.7 percent month-on-month, exceeding economists’ forecasts and signaling renewed buyer activity following a late-2025 slump. This monthly increase boosted the average property value to £300,077, underscoring the market’s resilience early in the year.

Key Drivers Behind the Price Rebound
Several factors are driving the rebound and strengthening of house prices across the UK. Easing borrowing costs due to lower mortgage rates, rising wages, and the gradual relaxation of lending criteria have supported underlying demand. Despite these positive drivers, affordability remains a significant concern for many prospective buyers, particularly in major urban centres and southern England where prices are significantly higher than the national average.

Regional Variations in the UK Property Market
Halifax’s figures also reveal notable regional disparities in housing market performance. While the national average price crossed the £300,000 threshold, markets in Northern Ireland and Scotland showed stronger annual growth compared to areas in the south of England, where prices have slowed or declined. These regional differences reflect local economic conditions, variations in mortgage accessibility, and differing competitive dynamics across the country.

Outlook for UK House Prices through 2026
Looking ahead, housing market analysts anticipate that UK house prices will continue to rise modestly in 2026 as lower mortgage costs and sustained demand support price growth. Ongoing challenges related to house affordability and regional discrepancies, however, are expected to remain key factors influencing market dynamics throughout the year.

As reported by experts at International Investment, the ascent of UK house prices to record levels highlights a recovering property market, yet underscores persistent affordability issues and regional imbalances that merit close attention from investors and policymakers alike.