The average UK house price has risen above £300,000 for the first time, new data from Halifax has found, as the cheapest regions to buy in 2026 are revealed.
Prices jumped by one per cent in a year, the figures show – with some major regional differences – taking the average price to £300,077.
While prices remain highest in London and southern regions, the data shows that prices have fallen in some areas in the past year.
The average house price in London remains the highest by some margin at £538,600, but has dropped 1.3 per cent from January 2025.
This was followed by the South East, at an average of £385,086 (down 1.6 per cent) and the South West, at £303,625 (also down 1.6 per cent).
Meanwhile, house prices in Northern Ireland were amongst the cheapest, at £217,206, but recorded the highest yearly rise at 5.9 per cent. Similarly, in Scotland, the average price was £221,711, but up 5.4 per cent.
Amanda Bryden, head of mortgages at Halifax, said the housing market “entered 2026 on a steady footing, with average prices rising by 0.7 per cent in January, more than reversing the 0.5 per cent fall seen in December”.
“Annual growth also edged higher to 1.0 per cent, pushing the cost of the typical UK home above £300,000 for the first time.
“While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability remains a challenge for many would-be buyers.”
Ms Bryden added: “Broader economic conditions continue to provide some support. Wage growth has been outpacing property price inflation since late 2022, steadily improving underlying affordability.
“That’s a positive trend for buyers, and the long-term health of the market. And we’re now seeing more mortgage deals below 4 per cent. If inflation continues to ease, there should be further gradual reductions as the year goes on.
“All in all, we still think house prices are likely to edge up between 1 per cent and 3 per cent this year.”
Nathan Emerson, CEO of Propertymark, commented: “As we progress further into the year, it is encouraging to see the housing market gathering pace. We are witnessing an increased flow of homes being brought to market, alongside growing confidence among buyers and sellers as they approach the moving process.
"However, affordability remains a key issue for many. To turn improving market conditions into meaningful access to homeownership, buyers need targeted support, a stable lending environment and policies that directly address affordability pressures across all tenures."
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