Home costs hit all time high – see how your | U.Ok.Finance Information
UK home costs rose 0.7% month-on-month to hit a new top of £299,138, based on the Halifax home price index.
The increase adopted a month-to-month dip of -0.2% during December and meant annual growth eased barely to three.0% in comparison with 3.4% the earlier month.
Home costs in Northern Eire rose probably the most, 5.9% over the 12 months, whereas Scotland at 2.4%, London at 2.8% and the South East at 2.9% all skilled more restrained growth.
Amanda Bryden, head of mortgages, Halifax, mentioned the UK housing market began the 12 months positively.
She mentioned: “This increase pushed the average property price to a new record high of £299,138. However, annual growth slowed to 3.0%, the slowest rate since last July.
“Affordability remains to be a problem for a lot of would-be consumers, however the market’s resilience is noteworthy.”
Bryden said a hike in stamp duty this April may mean some of the demand had come from first-time buyers eager to complete transactions before the end of March.
“Regardless of geopolitical uncertainties and waning shopper confidence, different key indicators look pretty optimistic for the housing market.
“The Bank of England has made its first base rate cut of the year, and there are probably more to come. Household earnings are expected to continue outpacing inflation – albeit that gap may narrow – easing some of the financial pressure still being felt from the cost-of-living squeeze.
“As issues stand, mortgage charges are more likely to hover between 4% and 5% in 2025, influenced by each world financial markets and home financial coverage.”
Experts said the lack of housing supply was likely to keep house prices buoyant for now.
Holly Tomlinson, a financial planner at Quilter said said the Bank of England’s decision to cut interest rates to 4.5% would ease affordability “and maybe give more people the impetus to mud off any beforehand shelved home shopping for plans”.
Iain McKenzie, chief executive of the Guild of Property Professionals, said: “The choice to cut the rate of interest ought to additional improve affordability, widening the customer pool and sustaining price growth to some degree.
Tom Invoice, head of UK residential analysis at Knight Frank, mentioned that provide had risen more than demand in 2025, “which should keep downwards pressure on prices in the short-term.”
Daniel Austin, CEO and co-founder at ASK Companions, mentioned: “We are seeing a greater variety of housing options, such as co-living schemes, coming to market which fulfil the growing requirements of younger professional buyers. If prices flatten and interest rates start to fall, we will see more first-time buyers able to step onto the property ladder.”
Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, said: “Current householders contemplating a transfer also can benefit from decrease property tax fees supplied they full their deal earlier than the tip of March. At that time the short-term stamp obligation reduction reverts to the earlier, increased ranges although some first-time consumers seem decided to push forward with purchases, regardless of the tax break change, to take benefit of higher affordability situations.
East Midlands – average home price £245,352 up 3.3% (annual).
Jap England – average home price is £337,267 an increase of 2.7%.
London – average home price is £548,288 a rise of 2.8%.
North East – up to an average of £178,696, an annual increase of 5.2%.
North West – average price of a home £239,772, an increase of 4.5%.
Northern Eire – average price £205,473 up 5.9% on an annual foundation.
Scotland – average price of a home £210,690 up 2.4%.
South East – average price is £391,298 up 2.9%.
South West- average price of a home is £308,424 up 4.0%.
Wales – average price is £227,397 up 3.6%.
West Midlands – average price is £261,280, an increase of 4.0%.
Yorkshire and the Humber – average price of a home is £215,764 up 4.6%.The average property price in January was £299,138, Halifax mentioned.
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