Property values hit £300k for first time
The latest Halifax House Price Index for January 2025.
- On a monthly basis, house prices increased by 0.7% between December and January, reversing the decline of -0.5% seen between November and December of last year.
- Annually, house prices were up 1% versus this time last year, with this annual rate of growth accelerating when compared to the 0.4% increase seen in December.
- As a result, the average house price has exceeded the £300,000 threshold for the first time, now sitting at £300,077.
Here are some thoughts from the Industry.
Nathan Emerson, CEO of Propertymark, comments:
“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.
“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.”
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.”
Damien Jefferies, Founder of Jefferies London, commented:
“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. 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 of Yopa, commented:
“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.
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.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“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.
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.”
Guy Gittins, CEO of Foxtons, commented:
“The UK property market has once again started the year positively, with house prices climbing on both a monthly and annual basis.
At Foxtons, we’ve already seen the expected seasonal uplifts from buyer enquiries and viewings booked, to offers being made and accepted, particularly in our North West and Hertfordshire regions.
With borrowing conditions improving and momentum building, our outlook for the year ahead is for sustainable and positive growth.”
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