The latest Halifax House Price Index shows UK house prices have climbed above £300,000 for the first time, marking a notable milestone for the housing market. While the data points to renewed momentum at the start of the year, affordability pressures and interest rate uncertainty continue to shape buyer confidence.
Mortgage and Property experts across the industry have shared their reaction to the data and what this means going forward.
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.”
Karen Noye, mortgage expert at Quilter:
“Halifax’s latest house price data shows annual growth of 1%, with prices changing by 0.7% over the month. The average property now sits historically just above £300,000 at £300,077, which underlines a market that is steadily growing, but not quite booming. Crossing the £300,000 threshold will be welcome news for existing homeowners, but it’s yet another nail in the coffin for first‑time buyers already battling stretched affordability.
The defining feature of the housing market right now is restraint. There is activity out there, but buyers are still having to work hard on affordability. Even though mortgage rates have eased from their highs, they are materially above the ultra-low levels people became used to over the previous decade. That shift continues to weigh on confidence, although at some point, people will get used to this new normal and those rates become a pleasant but distant memory.
At the same time, lenders are not short of appetite. With demand relatively subdued, banks and building societies are competing for a smaller pool of borrowers. We are seeing regular pricing tweaks and product launches as lenders vie for custom. That competitive dynamic is helping to keep mortgage rates from drifting higher and, in some cases, nudging them downwards despite the Bank of England holding rates yesterday.
Sellers need to price realistically and buyers remain cautious, particularly first-time buyers who are sensitive to monthly payment changes. The result is modest house price growth rather than sharp swings in either direction.
Looking ahead, much will depend on whether the expected rate cuts later this year materialise. If they do, the impact is more likely to be gradual support for affordability rather than a sudden jump in prices. Stability has returned, but enthusiasm has not, and that is likely to keep price growth contained over the months ahead.”
Commenting on the latest Halifax house price data showing a 1% increase, 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.”
Nicky Stevenson, Managing Director at Fine & Country, comments:
“Today is a significant milestone for the housing market, with the average UK house price rising above £300,000 for the first time. While this is a symbolic moment rather than a sudden shift, it underlines how values have continued to hold up despite the economic pressures households have faced over the past couple of years.
This uplift at the start of the year reflects a return of momentum after a quieter end to 2025. January often benefits from renewed interest from buyers, and that is feeding through into house prices.
Affordability remains front of mind, but the picture is gradually improving. Wage growth has helped ease some pressure, inflation is expected to moderate over time, and mortgage rates have stabilised compared with their recent highs. Together, these factors are giving buyers more confidence to move forward with plans that may have been paused last year.
There are still clear regional differences, with some parts of the country performing more strongly than others. That reinforces the importance of understanding local market conditions, as demand and pricing can vary widely depending on location and property type.
Looking ahead, passing the £300,000 mark should be seen as a reflection of long-term market resilience rather than a sign of runaway growth. While interest rates have held firm this month, borrowing costs are expected to continue easing, and we expect steady momentum to take shape as we move into spring.”
James Nightingall, founder of property search service HomeFinder AI, says:
“January’s property market was boosted by improved buyer and seller confidence, but the Bank of England’s recent decision not to cut interest rates could dampen demand. First-time buyers, on the other hand, continue to benefit from new-build incentives whilst Santander just introduced a new 2% mortgage for first-time buyers that will motivate more people to make the step towards homeownership this year.”
