Average house price rises above £300k for first time, says Halifax

Average UK house prices have risen above £300,000 for the first time, according to the latest Halifax house price index.

According to the latest figures from the bank, prices rose 0.7% in January, after a 0.5% fall in December. Annual growth in January stood at 1%, up from 0.4% in December.

The fluctuations left the average price in January at £300,077. 

Amanda Bryden, head of mortgages at Halifax, said: “While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers.”

She noted that wage growth had outpaced property price inflation since late 2022, resulting in “steadily improving underlying affordability”.

“That’s a positive trend for buyers, and the long-term health of the market,” she said, adding that mortgage deals below 4% were now emerging. 

“ If inflation continues to ease, there should be further gradual reductions as the year goes on,” she said.

“All in all, we still think house prices are likely to edge up between 1% and 3% this year.”

A regional divide in house price growth has continued, with northern regions of England and the devolved nations experiencing modest to strong growth, while southern parts of England saw prices soften.