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The average UK house price rose more than expected in January, hitting a new record high, according to mortgage lender Halifax.
House prices rose 0.7 per cent in the month following a dip of -0.2 per cent in December, taking the average property price to £299,138 according to new data on Friday.
This was much stronger than the 0.2 per cent growth expected by economists polled by Reuters.
However, annual growth in prices eased slightly to 3 per cent, down from 3.4 per cent in the previous month.
Amanda Bryden, head of mortgages at Halifax, said the UK housing market had “started the year on a positive note”.
“Affordability is still a challenge for many would-be buyers, but the market’s resilience is noteworthy. There’s strong demand for new mortgages and growth in lending,” she said, adding that some first-time buyers might have been eager to complete purchases before a rise in stamp duty at the end of March.
On Thursday, the Bank of England cut interest rates by a quarter of a percentage point to 4.5 per cent, the lowest since June 2023, supporting the property market.
BoE deputy governor Dave Ramsden said the gradual reduction in rates since August last year was feeding through into mortgage rates, supporting demand.
Friday’s figures contrast with separate data from mortgage lender Nationwide, which showed house prices rising only 0.1 per cent in January, a slowing of the growth rate.
https://www.ft.com/content/f3e49821-1c06-46c3-94d3-c547b2e4315a
