Average UK House Prices Top £300,000 for the First Time

House prices rose 0.7% in January 2026, according to Halifax's latest House Price Index, taking the average UK property price to £300,077 — the first time it has exceeded £300,000. To understand what a mortgage at this level looks like in practice, see our £300k mortgage guide.

The increase follows a 0.5% decline in December, with annual price growth now standing at 1%, up from 0.4% the previous month. House prices have climbed by nearly 19% in the three years between 2020 and 2023, fuelled by ultra-low mortgage costs and increased demand for space following the pandemic.

While £300,000 marks a significant psychological milestone, Halifax notes that affordability remains a major challenge for many aspiring homebuyers. Understanding stamp duty costs is also essential when budgeting. However, there are positive signs on the horizon.

Despite the headline figure, broader economic conditions are providing some support for buyers. Wage growth has been outpacing property price inflation since late 2022, steadily improving underlying affordability. This is a positive trend for buyers and for the long-term health of the market.

At the time of writing (February 2026), more mortgage deals were available below 4%. Third-party forecasters were then predicting house-price growth of between 1% and 3% for 2026 — an external forecast at the time, not a prediction by The Mortgage Genie, and not guidance on where mortgage rates will go.

Lenders are also introducing new products to support first-time buyers, with some at the time of writing offering 98% mortgages for those struggling to save a larger deposit.

Although the headline average can seem daunting, house prices vary enormously across the UK. Many locations offer far more accessible price points, especially in northern regions where homes can often be found for under £200,000.

A widening divide in house price performance is emerging between northern and southern regions:

• Northern Ireland: the standout performer, with prices up 5.9% annually to £217,206
• Scotland: strong gains of 5.4% annually, pushing the average to £221,711
• Wales: more subdued growth of 0.5%, with an average price of £228,415
• South East, South West, London & Eastern England: prices declined by more than 1% annually — notable given these are the four most expensive regions

For first-time buyers in particular, looking beyond the headline average and exploring more affordable regions can make the difference between getting on the ladder and continuing to rent. Our guide on government schemes for homebuyers outlines additional support available.