UK house prices rebounded at a stronger-than-expected pace in January, reaching a record high, data from the mortgage lender Halifax showed Friday.
House prices increased 0.7 percent on a yearly basis in January, following a fall of 0.5 percent in December.
Year-on-year, growth in house prices accelerated to 1.0 percent from 0.4 percent in the prior month.
Average property prices hit GBP 300,077 in January. Data showed that house prices rose above GBP 300,000 for the first time on record.
“While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers,” Halifax Head of Mortgages Amanda Bryden said.
Bryden noted that broader economic conditions continue to provide some support. “Wage growth has been outpacing property price inflation since late 2022, steadily improving underlying affordability,” added Bryden. That is a positive trend for buyers, and the long-term health of the market.
Halifax expects house prices to edge up between 1 percent and 3 percent this year.
This week, the Bank of England maintained its interest rate at 3.75 percent, which was the lowest since early 2023, and also the bank hinted at further reduction.
For comments and feedback contact: editorial@rttnews.com
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
