UK house prices have reached an all-time high, with the average property now valued at £299,138, according to Halifax. The country’s largest mortgage lender, part of Lloyds Banking Group, reported that property values rebounded in January following a slight dip in December. While annual price growth has slowed to 3.0% - the weakest rate since July 2023 - Halifax described the market as showing "noteworthy" resilience.

Amanda Bryden, Halifax’s head of mortgages, noted a strong demand for new mortgage lending, possibly driven by first-time buyers rushing to secure deals ahead of an upcoming stamp duty increase in April. Under changes announced by Chancellor Rachel Reeves last October, the stamp duty threshold in England and Northern Ireland will revert to £125,000 from the current £250,000. First-time buyers, who currently pay no stamp duty on homes up to £425,000, will see this limit reduced to £300,000.

Despite concerns over global uncertainty and declining consumer confidence, Bryden highlighted positive factors supporting the housing market, such as falling interest rates and rising household earnings outpacing inflation. She predicted mortgage rates would remain between 4% and 5% throughout 2025, shaped by both international financial trends and domestic monetary policies.

Regional price growth varied, with Northern Ireland experiencing the highest annual increase of 5.9%, bringing the average property price to £205,473. The North East of England saw a 5.2% rise to £178,696, overtaking the North West as the region with the strongest growth. London remains the UK’s most expensive area, with average property values climbing 2.8% to £548,288. Halifax’s data is based solely on mortgage lending and does not include cash purchases, which account for around a third of all home sales.