The January 2026 Halifax House Price Index (HPI) reveals a confident start to the year for the for the UK housing market, with average property prices rising by +0.7% and surpassing the £300,000 mark for the first time.
Key statistics in January:
- Average UK house price: £300,077
- Monthly change: +0.7% (vs -0.5% in December)
- Annual growth: +1.0% (up from +0.4% in December)
- Quarterly change: +0.1%
- Notable trend: Northern Ireland continues to outperform with average prices rising +5.9% annually to £217,206
Amanda Bryden, Head of Mortgages at Halifax, commented:
“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 a typical UK home above £300,000 for the first time.
While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would‑be buyers.”
What does this mean for first time buyers?
For first-time buyers, a £300,000 average UK house price can seem daunting, but this figure does not reflect the types of homes most new buyers are considering. Many are looking at smaller and more affordable properties, particularly in northern regions where prices often fall below £200,000. Although affordability is still a challenge, conditions are gradually becoming more favourable. Wage growth has been outpacing house price inflation and more competitive mortgage rates are starting to appear as lenders introduce sub 4% products. These improvements suggest that 2026 could offer better opportunities for those hoping to get onto the property ladder.
So what would this mean for conveyancers?
Conveyancers may also see more first time buyers seeking guidance on financing options, shared ownership, and the most accessible paths into home ownership.
The next Halifax House Price Index is scheduled for release on Friday 6th March.
