The UK hotspots with strongest house prices shared as rates climb for fourth consecutive month
House prices across the United Kingdom have climbed by an average 1.3%
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House prices across Britain have climbed by 1.3 per cent in January, with most regions enjoying an increase in house rates on last year.
Halifax has its latest house price index, indicating that house prices grew for the fourth month in a row across different regions.
The figures suggest the housing market is on the road to recovery following a drop in mortgage rates.
The typical UK Home now costs £291,029, marking an increase of £3,900 over last month, Halifax reports.
House prices across the United Kingdom have risen by 1.3%
Halifax
Scotland and Wales both saw growth of +4 per cent on an annual basis to £206,087 and £219,609 respectively.
London retained the top spot for the highest average house price across all regions, at £529,528. Albeit, prices in the capital have dropped by -0.4 per cent on an annual basis.
The South East has seen the most downward pressure on house prices, with a -2.3 per cent drop in rates recorded in the past year.
Nations and regions house prices:
- Northern Ireland £196,760 (+5.3%)
- Scotland £206,087 (+4%)
- Wales £219,609 (+4%)
- The South East £379,220 (-2.3%)
- London £529,528 (-0.4%)
Kim Kinnair, Director of Halifax Mortgages said: “The average hour price in January was £391,029, up to +1.3 per cent or, in cash terms, £3,924 compared to December 2023.
“This is the fourth consecutive month that house prices have risen and, as a result, the pace of annual growth is now +2.5 per cent, the highest rate since January last year.”
Lenders slashing mortgage rates could continue to fuel an upward trend in home rates, explained Kinnair.
She continued: “The recent reduction of mortgage rates from lenders and competition picks up, alongside fading inflationary pressure and a still-resilient labour market has contributed to increased confidence among buyers and sellers.
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The average house price in London has dropped over the past year
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“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 £53,414, around 19 per cent of the purchase price.
“It’s not surprising that almost two-thirds (63 per cent) of new buyers getting a foot on the ladder, is now buyer in joint names,” pointed out Kinnair.
“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."