The average UK house price has topped £300,000 for the first time, according to the latest Halifax House Price Index. January’s 0.7 percent monthly rise more than reversed December’s 0.5 percent fall, taking the typical property value to £300,077.
Annual growth edged up to 1 percent, compared with 0.4 percent in December. Over the past three years, property prices have climbed by 5.7 percent – around £16,000 in cash terms.
Regional trends diverge
The milestone masks widening regional differences. Northern Ireland leads the UK with prices rising 5.9 percent annually to £217,206. Scotland follows with 5.4 percent growth, taking average values to £221,711.
Northern England has maintained momentum from 2025, with the North West recording 2.1 percent annual growth to £244,329 and the North East up 1.2 percent to £181,198. However, southern regions have softened. The South East, South West, London and Eastern England all saw annual declines exceeding 1 percent – a pattern also reflected in recent Nationwide data.
Mortgage activity stays resilient
Amanda Bryden, head of mortgages at Halifax, said the market had entered 2026 on a steady footing. “While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers,” she said.
Bryden expects prices to edge up between 1 and 3 percent this year. The Bank of England’s decision to hold rates at 3.75 percent this week has not dampened market sentiment, with lenders continuing to compete for business and cut fixed rates.
Tom Bill, head of UK residential research at Knight Frank, noted that decisions delayed ahead of November’s Budget had now been activated. “However, momentum has since faded and mortgage approvals are running 9 percent below the five-year average, which shows demand is on a knife-edge,” he said.
What it means for landlords
For buy-to-let investors, the data presents a mixed picture. Slower price growth in southern England may create entry points for those targeting higher-yielding regions, while the North’s stronger performance reflects ongoing transaction resilience heading into 2026.
Nathan Emerson, chief executive of Propertymark, said lenders were becoming increasingly competitive. “Taking a broader view, lenders are expanding their range of mortgage products and improving access for those planning their next home move,” he said.
The Halifax House Price Index tracks prices of properties purchased with a Halifax mortgage, making it a reliable barometer for the mainstream market. The £300,000 milestone reflects a 75 percent increase from the £171,000 average recorded a decade ago.
Editor’s view
Crossing £300,000 sounds dramatic, but the real story lies in the north-south divergence. For landlords, cheaper regions continue to outperform – a trend that shows no sign of reversing while affordability pressures bear down on the South East.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 7 February 2026
Sources: Halifax, Knight Frank, Propertymark
Related reading: House prices rise 1% as affordability gains support landlord confidence
