House prices rebound to record high in January - Halifax

(Sharecast News) - House prices rebounded in January to a record high, according to figures released on Friday by Halifax. House prices rose 0.7% on the month following a 0.5% decline in December. On the year, prices were up 1% in January following a 0.4% increase the month before.

The average price of a home stood at £300,077, up from £297,938 in December and above £300,000 for the first time.

Amanda Bryden, head of mortgages at Halifax, said: "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."