House prices hit a record high in January, fuelled by strong demand, in part as prospective buyers raced to complete deals before stamp duty hikes.
According to Halifax, average house prices rose by 0.7% over the month, or 3.0% on an annual basis, to £299,138, after falling by 0.2% in December.
Head of mortgages at the lender, Amanda Bryden, flagged the market’s resilience was “noteworthy” as affordability challenges remained and consumer confidence waned.
“There’s strong demand for new mortgages and growth in lending,” she said, highlighting a likely boost as buyers rushed ahead of stamp duty increases in April.
Northern Ireland saw the strongest growth, while prices in Scotland climbed at the slowest rate.
“Mortgage rates are likely to hover between 4% and 5% in 2025,” Bryden added, “but the fundamental issue in the housing market remains the lack of supply”.