- Average property price is now £300,077, says Halifax
House prices have risen above £300,000 for the first time ever, according to Halifax, with its latest data suggesting the market is off to a flying start this year.
The mortgage lender says house prices increased 0.7 per cent in the month of January, seeing £2,139 added to the value of the typical home.
It means the average property price is now £300,077 – 1 per cent higher than a year ago and marking the first time ever values have surpassed the £300,000 milestone.
It also means house prices have risen by more in the first month of this year than they did in the entirety of 2025, during which the average home went up just 0.4 per cent.
Amanda Bryden, head of mortgages at Halifax, says that despite prices surging in January, the momentum is unlikely to continue with prices expected to finish the year no more than 3 per cent higher than where they are now.
‘While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers,’ says Bryden.
‘Broader economic conditions continue to provide some support. Wage growth has been outpacing property price inflation since late 2022, steadily improving underlying affordability. That’s a positive trend for buyers, and the long-term health of the market.
‘And we’re now seeing more mortgage deals below 4 per cent. If inflation continues to ease, there should be further gradual reductions as the year goes on.
‘All in all, we still think house prices are likely to edge up between 1 per cent and 3 per cent this year.’
Nicholas Finn, managing director of Garrington Property Finders says Halifax’s data is the clearest indication yet that the property market is regaining the momentum it lost at the end of 2025.
‘With mortgage rates falling in January and set to fall even further in coming months as the Bank of England sounds increasingly dovish, borrowing costs are becoming less of a barrier to aspiring buyers,’ said Finn.
‘Coupled with the sense that a year of flat or even falling prices has made homes better value, this is providing a powerful spur to demand.
‘Discretionary buyers, who are especially sensitive to mortgage costs, are returning to the top of the market. And many renters who put off plans to buy their first home amid the uncertainty of last year are asking themselves ‘if not now, then when?’
Finn added: ‘It’s early days, but this is an encouraging start to the year and we could be on track for a strong spring as demand accelerates.’
Why have prices barely risen?
Although the average property price is now above £300,000, prices have moved very little in recent years following the sharp increases seen during the pandemic.
Over the past three years, property prices have risen 5.7 per cent, or around £16,000.
Halifax puts this down to higher interest rates and stretched affordability.
By contrast, the three years from 2020 to 2023 saw prices climb nearly 19 per cent (more than £44,000), driven by ultra‑low borrowing costs and the ‘race for space’.
However, it’s also down to regional differences in house price performance becoming more pronounced.
In the north, positive momentum has carried over from last year, according to the mortgage lender.
The North West saw prices increase 2.1 per cent to £244,329 over the past year, while the North East recorded 1.2 per cent annual growth, bringing the typical price to £181,198.
In Scotland prices are up 5.4 per cent, taking the average property price to £221,711.
However, further south prices are in limbo and even falling.
The South East, South West, London and Eastern England all saw annual declines of more than 1 per cent.
Meanwhile, prices in Wales rose by just 0.5 per cent over the year, with the average home now costing £228,415.
Anthony Codling, a housing analyst at investment bank RBC Capital Markets said: ‘Whilst housing affordability is stretched for many, rising wages, falling mortgage rates and the easing of mortgage lending limits have all contributed to rising house prices at national level,’
‘The spring selling season has got off to a good start. However not all regions are equal and house prices in the South East, South West and London are lower than they were one year ago.’