UK house prices increased by 0.7% month-on-month in January to reach a new record average high. (Image: Getty)
UK house prices rose 0.7% month-on-month to hit a new height of £299,138, according to the index.
The increase followed a monthly dip of -0.2% during December and meant annual growth eased slightly to 3.0% compared to 3.4% the previous month.
House prices in Northern Ireland rose the most, 5.9% over the year, while Scotland at 2.4%, London at 2.8% and the South East at 2.9% all experienced more restrained growth.
Amanda Bryden, head of mortgages, Halifax, said the UK housing market started the year positively.
She said: “This increase pushed the average property price to a new record high of £299,138. However, annual growth slowed to 3.0%, the slowest rate since last July.
“Affordability is still a challenge for many would-be buyers, but the market’s resilience is noteworthy.”
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Bryden said a hike in stamp duty this April may mean some of the demand had come from first-time buyers eager to complete transactions before the end of March.
“Despite geopolitical uncertainties and waning consumer confidence, other key indicators look fairly positive for the housing market.
“The Bank of England has made its first base rate cut of the year, and there are probably more to come. Household earnings are expected to continue outpacing inflation – albeit that gap may narrow – easing some of the financial pressure still being felt from the cost-of-living squeeze.
“As things stand, rates are likely to hover between 4% and 5% in 2025, influenced by both global financial markets and domestic monetary policy.”
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Experts said the lack of housing supply was likely to keep house prices buoyant for now.
Holly Tomlinson, a financial planner at Quilter said said the Bank of England’s decision to cut to 4.5% would ease affordability “and perhaps give more people the impetus to dust off any previously shelved house buying plans”.
Iain McKenzie, chief executive of the Guild of Property Professionals, said: “The decision to cut the should further improve affordability, widening the buyer pool and sustaining price growth to some degree.
Tom Bill, head of UK residential research at Knight Frank, said that supply had risen more than demand in 2025, “which should keep downwards pressure on prices in the short-term.”
Daniel Austin, CEO and co-founder at ASK Partners, said: “We are seeing a greater variety of housing options, such as co-living schemes, coming to market which fulfil the growing requirements of younger professional buyers. If prices flatten and start to fall, we will see more first-time buyers able to step onto the property ladder.”
Alice Haine, Personal Finance Analyst at , said: “Existing homeowners considering a move can also benefit from lower property tax charges provided they complete their deal before the end of March. At that point the temporary stamp duty relief reverts to the previous, higher levels though some first-time buyers appear determined to push ahead with purchases, despite the tax break change, to take advantage of better affordability conditions.
What is happening to house prices in your region
East Midlands – average house price £245,352 up 3.3% (annual).
Eastern England – average house price is £337,267 an increase of 2.7%.
London – average house price is £548,288 a rise of 2.8%.
North East – up to an average of £178,696, an annual increase of 5.2%.
North West – average price of a home £239,772, an increase of 4.5%.
Northern Ireland – average price £205,473 up 5.9% on an annual basis.
Scotland – average price of a home £210,690 up 2.4%.
South East – average price is £391,298 up 2.9%.
South West- average price of a home is £308,424 up 4.0%.
Wales – average price is £227,397 up 3.6%.
West Midlands – average price is £261,280, an increase of 4.0%.
Yorkshire and the Humber – average price of a home is £215,764 up 4.6%.The average property price in January was £299,138, Halifax said.