Halifax House Price Index January 2024

UK house prices increased 2.5% YoY in January, according to mortgage lender Halifax, the highest annual growth since January 2023
House prices in the south east of England are under the most pressure.
Average UK property now costs £291,029, up over £3,700 on the previous month.

Annual rate of growth stood at +2.5%

Source: Halifax, IHS Markit

Key Trends

The average UK house price in January was £291,029, a monthly increase of 1.3% compared with December 2023, marking the fourth consecutive month of rising house prices.
The annual growth rate now stands at +2.5%, the highest since January of the previous year.
Northern Ireland witnessed the strongest annual growth across all UK nations or regions, with house prices increasing by +5.3%, reaching an average of £195,760—an increase of £9,761 compared to January 2023. Scotland and Wales also experienced robust growth.
On the other hand, prices in the South East dropped by 2.3% YoY. Prices in London fell by 0.4% on the annual basis, but the capital retains the highest average house price in the country at £529,528.

Outlook

Recent reductions in mortgage rates, coupled with heightened competition among lenders, easing inflationary pressures and a resilient labour market, have pushed up confidence among both buyers and sellers, contributing to an optimistic start to 2024 in the housing market.
However, Interest rates remain elevated compared to historic lows, and demand continues to outpace supply, with first-time homebuyers facing an average deposit of £53,414, approximately 19% of the purchase price.
Affordability challenges are expected to persist, and further modest declines in house prices should not be discounted amid broader economic uncertainty.