House prices increased by +0.7% in January, following a -0.5% fall in December, says the Halifax.
But this particular index is now showing the average property price at £300,077, rising above £300,000 for the first time.
Annual growth is now +1.0%, up from +0.4% in December.
Amanda Bryden, Head of Mortgages, Halifax, says: “The housing market entered 2026 on a steady footing.
“While [£300,000 is] undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers.
“Broader economic conditions continue to provide some support.
“Wage growth has been outpacing property price inflation since late 2022, steadily improving underlying affordability.
“That’s a positive trend for buyers, and the long-term health of the market.
“And we’re now seeing more mortgage deals below 4%.
“If inflation continues to ease, there should be further gradual reductions as the year goes on.
“All in all, we still think house prices are likely to edge up between 1% and 3% this year.”
Jason Tebb, President of property portal OnTheMarket, comments: “Post-Budget clarity has given the housing market a boost, with buyers and sellers who put moves on hold resolving to press ahead.
“Six interest rate reductions in the past 18 months have helped ease affordability and encourage activity.”
And Jeremy Leaf, north London estate agent and a former RICS residential chairman, adds: “There is no question now that the market is on the move.
“Enquiries and sales agreed have increased markedly and the market is demonstrating resilience.
“On the other hand, the rise in listings this year, reluctance of the Bank of England to cut interest rates more rapidly and ongoing concerns about the economy mean that house prices are unlikely to increase significantly.”
Finally Tom Bill, head of UK residential research at Knight Frank, says: “House prices rose in January as decisions delayed ahead of the November Budget were activated either side of Christmas.
“However, momentum has since faded and mortgage approvals are running 9% below the five-year average, which shows demand is on a knife-edge.”
This article is taken from Landlord Today