Average house prices up for fourth month in a row

The average UK house price jumped by £3,785 month on month in January, marking the fourth month in a row of increases, according to an index.

Property values typically rose by 1.3 per cent compared with December, Halifax said. Nationally, house prices increased by 2.5 per cent annually – the highest annual growth since January 2023. In Scotland the annual increase was 4 per cent.

Kim Kinnaird, director, Halifax Mortgages, said: “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.

“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 per cent of the purchase price.”

Tom Bill, head of UK residential research at estate agent Knight Frank, said: “After suffering the effects of 14 consecutive rate rises last year, house prices are getting stronger as multiple interest rate cuts are expected in 2024. The number of offers being submitted have increased since lenders dropped their prices last month.”