Halifax house prices rise for fourth month in a row - Halifax

UK house prices rose in January for the fourth month in a row as mortgage rates fell, according to figures released on Wednesday by Halifax.

House prices were up 1.3% on the month following a 1.1% increase in December 2023.

On the year, prices rose 2.5% in January following a 1.8% jump the month before. This marked the highest annual growth since January 2023.

The average UK home now costs £291,029, up from 287,244.

Kim Kinnaird, director at Halifax mortgages, said: "The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market has contributed to increased confidence among buyers and sellers. This has resulted in a positive start to 2024’s housing market.

"However, while housing activity has increased over recent months, interest rates remain elevated compared to the historic lows seen in recent years and demand continues to exceed supply. For those looking to buy a first home, the average deposit raised is now £53,414, around 19% of the purchase price. It’s not surprising that almost two thirds (63%) of new buyers getting a foot on the ladder are now buying in joint names.

"Looking ahead, affordability challenges are likely to remain and further modest falls should not be ruled out, against a backdrop of broader uncertainty in the economic environment."