Nationwide House Price Index for January 2026 – Industry Reaction
Nationwide House Price Index for January 2026.
The latest index shows that:
House prices increased by 0.3% between December 2025 and January 2026.
This reversed the -0.4% monthly decline seen between November and December of last year.
Annual growth sat at 1% in January 2026, with this annual rate of growth increasing from 0.6% in December 2025.
The average UK house price now stands at £270,873.
Nathan Emerson, CEO of Propertymark comments.
“It’s encouraging to see the housing market gathering pace as we head further into 2026. We have witnessed growing consumer confidence over the last twelve months, more competitive mortgage deals being offered by many lenders, and an increase in homes being placed for sale.
“Although inflation continues to play influence on the Bank of England’s base rate decisions, as we progress towards the spring it is hoped we may see further measured base rate cuts, which could further help invigorate overall affordability for many people who may have been cautiously keeping check on the market for their prime moment to jump into the buying and selling process.”
Damien Jefferies, Founder of Jefferies London, commented:
“The UK housing market has started the year with real intent, leaving the traditional Christmas slowdown firmly in the rear-view mirror. Buyer confidence has returned quickly, activity levels are rising, and momentum is building across the country.
This renewed energy is being supported by improving affordability and falling borrowing costs, giving movers greater confidence to proceed with their plans.
In London in particular, we are seeing a clear uplift in enquiries, viewings and agreed offers, as buyers who delayed decisions last year return to the market. With conditions continuing to improve, 2026 is already shaping up to be a far more active and decisive year for the capital.”
Verona Frankish, CEO of Yopa, commented:
“It’s back to business for the UK property market with the seasonal slowdown in house prices seen during December now a distant memory.
The housing market has wanted no time in finding its stride again and we’re seeing both buyers and sellers engaging with a far greater level of confidence.
This uplift in market momentum is being driven by improving affordability, with borrowing costs continuing to ease and, as a result, 2026 is already shaping up to be a far busier year for bricks and mortar.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“The property market has bounced back fighting fit following the festive break, with the reduction in house prices seen during December giving way to positive growth in 2026.
This suggests that the nation’s homebuyers and sellers have wasted no time in putting their plans into motion, driven by improving affordability and the recent boost of a base rate cut.
It’s already shaping up to be a far stronger year for the market and one that should see a reduction in selling times, improvements to the prices being achieved and the overall volume of transactions taking place.”
Daniel Austin, CEO and co-founder at ASK Partners, said:
“Today’s modest rise in UK house prices points to underlying resilience, but momentum remains constrained by affordability pressures and a ‘higher for longer’ interest rate backdrop. While recent rate cuts signal easing inflation, they are unlikely to transform market conditions overnight. Mortgage pricing has improved, yet buyer and developer confidence remains fragile following a Budget that offered little direct stimulus for housing.
“The market is increasingly being shaped by structural rather than cyclical forces. The UK’s forecast 1.4 per cent growth rate, relative outperformance versus the eurozone, and sustained interest from Gulf and Southeast Asian capital continue to support long-term confidence. However, mainstream buyer activity remains subdued, with demand instead flowing into structurally undersupplied rental markets, particularly build-to-rent and co-living in well-connected suburban and commuter locations.
“While proposed planning and affordable housing reforms may improve scheme viability at the margin, elevated construction and financing costs will continue to pressure margins in the near term. A clearer downward path for rates towards the 3.5 per cent range would help unlock stalled projects. Until then, capital is favouring resilient, income-led segments such as logistics, data centres, storage and other operational real estate, with real estate debt offering an attractive way to generate secured income while managing downside risk in a still-cautious market.”
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