Industry reacts to news as Head of Mortgages Amanda Bryden at the Halifax reveals property prices rose 0.7% last month after a dip in December.
7th Feb 20260 406 6 minutes read David Callaghan
Average house prices topped £300,000 for the first time after a 0.7% rise in January, according to the latest Halifax HPI.
The increase last month followed a 0.5% fall in December, and the average property price is now £300,077.
Annual growth was 1% last month, up from 0.4% before Christmas.
Over the last three years, property prices have risen by 5.7%, or around £16,000.
Regional differencesMeanwhile, regional differences in house prices have become more pronounced, Halifax reports. Northern Ireland continues to lead the UK, with average prices rising 5.9% annually to £217,206. Scotland follows closely, recording annual growth of 5.4%, taking the average property price to £221,711.
Positive momentumIn the north of England, “positive momentum has carried over from last year, with demand and inflation remaining robust”.
The North West saw prices increase 2.1% to £244,329, while the North East recorded 1.2% annual growth, bringing the typical price to £181,198.
However, southern regions have seen prices soften. The South East, South West, London and Eastern England all saw annual declines of more than 1%.
Affordability remains a challenge for many would-be buyers.”
Amanda Bryden, Head of Mortgages at Halifax (main picture), says: “The housing market entered 2026 on a steady footing, with average prices rising by 0.7% in January, more than reversing the -0.5% fall seen in December.
“Annual growth also edged higher to +1.0%, pushing the cost of the typical UK home above £300,000 for the first time,” she says.
“While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers.
“All in all, we still think house prices are likely to edge up between 1% and 3% this year.”
Industry reactionThe agents
Amy Reynolds, Head of Sales, Antony Roberts
Amy Reynolds, Head of Sales at Richmond estate agency Antony Roberts
“Halifax’s data reinforces what we’re seeing on the ground: prices are broadly stable, with modest growth where supply is tight and homes are priced realistically.
“This is not a market being driven by speculative price inflation, but by improved confidence and genuine need to move,” she says.
“Activity since the start of the year has been noticeably stronger, and as we head into spring, that underlying demand is supporting prices rather than pushing them sharply higher.”
Marc von Grundherr, Director, Benham & Reeves
Marc von Grundherr, Director at Benham and Reeves
“The latest Halifax figures mirror those from Nationwide earlier this week and provide further evidence that the housing market has hit the ground running in 2026, with the seasonal month-on-month decline seen in December now giving way to green shoots of positive house price growth.
“This shift suggests that buyers are re-entering the market with greater confidence and a stronger willingness to transact at higher price points, supported by improving affordability and greater clarity around mortgage costs,” he says.
“While some buyers may have been disappointed not to see interest rates cut yesterday, the ongoing stability provided by a hold will help to drive market momentum forward as the year progresses.”
Damien Jefferies, Founder, Jefferies London Prime Real Estate
Damien Jefferies, Founder of Jefferies London
“All signs are currently pointing to a property market that is on the up, with the average house price breaching the £300,000 mark for the first time.
“However, it’s important that home sellers, in particular, don’t exceed the pace being set, especially in more inflated regions such as London where higher market values naturally temper recovery and returning demand takes time to cultivate.
“The outlook for the year ahead is far more positive than it has been in recent years, with greater pricing stability and improving confidence laying much stronger foundations for sustainable growth,” he says.
“However, it’s important we don’t run before we can walk, as over pricing and stubborn seller expectations have been contributing factors to the slower market conditions seen in recent years.”
Verona Frankish, CEO, Yopa
Verona Frankish, CEO at Yopa
“The latest Halifax data reinforces building evidence that the market has found a more stable footing at the start of 2026, with homebuyers returning in greater numbers after the seasonal slowdown seen in December.
“These figures also suggest that they are doing so with renewed purchasing power, with the increase seen in mortgage approved house prices being driven by improvements to the lending landscape,” she says.
“However, a degree of pragmatism is still required on the side of the nation’s home sellers, as trying to price above current market values will inevitably see them struggle to secure interest, even with improving market sentiment.”
Tom Bill, Head of UK Residential Research, Knight Frank
Tom Bill, Head of UK Residential Research at Knight Frank
“House prices rose in January as decisions delayed ahead of the November Budget were activated either side of Christmas.
“However, momentum has since faded and mortgage approvals are running 9% below the five-year average, which shows demand is on a knife-edge. Mortgage lenders have pushed their rates higher in recent weeks as the chances of multiple bank rate cuts this year recede, although a reduction next month seems likely,” he says.
“As inflation comes under control, we expect demand and activity to steadily improve over coming months, although a challenge to the Prime Minister’s position could derail that recovery.”
Jeremy Leaf, Principal, Jeremy Leaf & Co
Jeremy Leaf, north London estate agent and a former RICS residential chairman
“There is no question now that the housing market is on the move. Enquiries and sales agreed have increased markedly and the market is demonstrating resilience.
“On the other hand, the rise in listings this year, reluctance of the Bank of England to cut interest rates more rapidly and ongoing concerns about the economy mean that house prices are unlikely to increase significantly, which will be welcome news for first-time buyers in particular.”
The brokers and lenders
Mark Harris, Chief Executive, SPF
Mark Harris, CEO at SPF Private Clients
“With the Budget out of the way and lenders trimming mortgage rates in order to get the year off to a good start, January has been a busy month for enquiries and activity.
“Mortgage pricing may not be declining dramatically but is becoming increasingly palatable to borrowers, with lenders also tweaking criteria and innovating, particularly with regard to products aimed at first-time buyers,” he says.
“Although the Bank of England didn’t cut interest rates, the markets are forecasting two to three further base rate reductions this year, which should help ease affordability further.”
Tomer Aboody, MT Finance
Tomer Aboody, Director at MT Finance
“Even through the tough times, the housing market remains remarkably stable with buyers and sellers continuing to transact, albeit at a slower pace.
“The interest rate environment is helping, with sentiment pointing towards further cuts this year and lenders keen to offer attractive mortgage rates. Nevertheless, affordability is still an issue, with cheaper regions seeing the strongest price growth while the more expensive south of England remains sensitive to higher borrowing costs and taxes.”
The portal
Jason Tebb, President of OnTheMarket
Jason Tebb, President at OnTheMarket
“Post-Budget clarity has given the housing market a boost, with buyers and sellers who put moves on hold resolving to press ahead.
“Six interest rate reductions in the past 18 months have helped ease affordability and encourage activity.
“While the Monetary Policy Committee voted to hold rates this month, the vote was narrower than expected suggesting further reductions to come, which should give those planning to move this year some confidence,” he says.
“While affordability concerns and increased stock levels keep property prices in check to an extent, nevertheless the housing market continues to demonstrate considerable resilience. While 2025 was a tough year, the early signs for 2026 are encouraging.”
The industry leaders
Nathan Emerson, Chief Executive, Propertymark
Nathan Emerson, CEO at Propertymark
“As we progress further into the year, it is encouraging to see the housing market gathering pace. We are witnessing an increased flow of homes being brought to market, alongside growing confidence among buyers and sellers as they approach the moving process.
“Taking a broader view, lenders are also becoming increasingly competitive, expanding their range of mortgage products and improving access for those planning their next home move.
“Yesterday’s base rate decision, which saw the Bank of England’s Monetary Policy Committee vote to keep rates steady at 3.75%, will provide a sense of reassurance for those considering a house move,” he says.
“However, affordability remains a key issue for many. To turn improving market conditions into meaningful access to homeownership, buyers need targeted support, a stable lending environment and policies that directly address affordability pressures across all tenures.”
Iain McKenzie, CEO, The Guild of Property Professionals
Iain McKenzie, CEO of The Guild of Property Professionals
“January’s Halifax HPI reading shows the housing market has started 2026 on a firmer footing, with the 0.7% monthly rise more than offsetting December’s dip and pushing average values above £300,000 for the first time. While annual growth remains modest at 1.0%, this steady improvement reflects a market that is regaining confidence rather than overheating.
“The wider backdrop is supportive. Mortgage rates have stabilised at levels below last year and competition among lenders is delivering increasingly attractive deals, particularly for buyers with stronger deposits,” he says.
“Although inflation’s recent uptick has delayed further base rate cuts, the overall direction for interest rates and wages continues to improve affordability. Crucially, transaction levels remain robust, with activity through 2025 comfortably above pre-pandemic norms, suggesting there is plenty of underlying demand.”
More on house prices
TagsHalifax house price index house prices 7th Feb 20260 406 6 minutes read David Callaghan Share Facebook X LinkedIn Share via Email
