THE average house price in the UK has hit £300,000 for the first time in a “massive symbolic milestone”, Halifax’s House Price Index (HPI) has shown.
House prices increased by 0.7% in January, following a 0.5% fall in December, with the annual rate of growth now at 1%, up from 0.4% in December, according to new data released by the Halifax.
The average property price is now £300,077, rising above £300k for the first time.
Regional differences in house price performance have become more pronounced, with a clear divide between the northern and southern parts of the UK.
Northern Ireland continues to lead the UK, with average prices rising 5.9% annually to £217,206. Scotland follows closely, recording annual growth of 5.4%, taking the average property price to £221,711.
Elsewhere, Wales saw a modest rise of 0.5% over the year, with the average home now costing £228,415.
Within England, the strongest growth remains concentrated in the north. The North West saw prices increase 2.1% to £244,328, while the North East recorded 1.2% annual growth, bringing the typical price to £181,198.
In contrast, southern regions have seen prices soften. The South East, South West, London and Eastern England all saw annual declines of more than 1%.
Massive symbolic milestone
Amanda Bryden, Head of Mortgages, Halifax, said: “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%, pushing the cost of the 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.
“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.”
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said we have “finally arrived” at the milestone.
She added: “£300k is less a milestone than a monolith. Average house prices have been flirting with this number for a while but now we have finally arrived. The Halifax are right to observe that while it’s a great headline number, it does underline the affordability challenges many face.
“If mortgage rates start to fall again, which is looking likely, and we get a rate cut from the Bank of England in the months ahead, the Halifax’s house price estimate for 2026 could prove to be conservative.”
We have finally arrived
Daniel Hobbs, CEO at Rayleigh-based New Leaf Distribution, said the milestone is “massive”.
He continued: “Average property prices passing £300k for the first time is a massive symbolic milestone. However, it also highlights the ongoing affordability challenges many borrowers face, especially those in London and the south where prices are typically higher.
“On a positive note, after yesterday’s dovish Bank of England decision, a rate cut in the next few months seems likely and that will provide additional support to those seeking to get onto the property ladder.”
Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, said it’s been a rollercoaster of a week in the market.
He added: “It’s been a very surreal week in the mortgage and property market. In the early stages of the week, lenders raised their rates quite sharply and then, after yesterday’s rate decision, swap rates, which determine the pricing of fixed rate mortgages, started to edge down again.
“What the £300k milestone does underline is the resilience of the property market in the face of ongoing economic challenges. But let’s not forget that higher prices means the affordability challenge becomes even harder for many borrowers.”
Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said it’s getting more and more expensive for first-time buyers.
He continued: “The rising cost of housing is one of the biggest obstacles for first-time buyers. This is why we are starting to see lenders throw caution to the wind and lend 6x income.
“It’s great to see property prices rise, it shows that bricks and mortar are still a solid investment, but it’s getting bloody expensive for those starting out.”
Blow for those struggling to save for a deposit
David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth Ltd, said renters are struggling to make the leap to buying.
He added: “Rising prices are a significant blow for those struggling to save for a deposit and take their first step onto the property ladder. Many remain trapped in high-cost rental accommodation, with the prospect of home ownership slipping further out of reach.
“In response, lenders are innovating and stretching loan-to-income ratios, in some cases to more than six times salary, in an effort to keep the first-time buyer market moving. However, the deeper challenge may lie within the home-mover market.
“Homeowners who are unable to upsize can become effectively stuck, reducing turnover and constricting the supply of properties at the lower end of the market.”
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said he is seeing evidence of more activity in the housing market.
He continued: “There has certainly been an uptick in housing activity since the start of 2026, so this all time high average is not unexpected. The improvement in mortgage affordability, coupled with smaller deposit lending have helped.
“We should see that average increase throughout 2026 as those lending changes will have more time to influence buyers old and new.”
