# Average UK house price rises above £300,000 for first time – Halifax

By Aneisha Beveridge — 2026-02-06

Aneisha Beveridge, research director at Connells Group, said: “After a muted start to the year, the housing market gathered momentum as January progressed. Activity was noticeably slower in the first couple of weeks, partly due to the timing of the holiday period, but enquiries picked up steadily throughout the month. By the end of January, applicant numbers had recovered to sit broadly in line with 2025 levels, signalling that buyers are beginning to re-engage as confidence returns.

“Falling mortgage rates have been the key catalyst. Through January, lenders continued to trim pricing, with some of the first sub 3.5% fixes re-emerging. That improvement in affordability has tempted more households back into the market, particularly first-time buyers, who remain at the forefront of early-year activity.

“Yesterday’s Bank of England decision reinforced that sense of stability. While the MPC held rates, the narrow vote and softer inflation backdrop suggest we’re edging closer to more cuts, provided the data keeps moving in the right direction. That expectation alone has contributed to the recent fall in mortgage rates, helping underpin both activity and prices. However, caution prevails, as the MPC vote came amid downgrades to economic projections for the year ahead.

“Taken together, the combination of improving borrowing costs and a bit more confidence means the market has started 2026 on firmer footing than many expected – with lower mortgage rates doing much of the heavy lifting in supporting demand and stabilising prices.”

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