6 February 2026
If you are covering the latest Halifax House Price Index, please see the following commentary from Karen Noye, mortgage expert at Quilter:
"Halifax’s latest house price data shows annual growth of 1%, with prices changing by 0.7% over the month. The average property now sits historically just above £300,000 at £300,077, which underlines a market that is steadily growing, but not quite booming. Crossing the £300,000 threshold will be welcome news for existing homeowners, but it’s yet another nail in the coffin for first‑time buyers already battling stretched affordability.
The defining feature of the housing market right now is restraint. There is activity out there but buyers are still having to work hard on affordability. Even though mortgage rates have eased from their highs, they are materially above the ultra-low levels people became used to over the previous decade. That shift continues to weigh on confidence although at some point people will get used to this new normal and those rates become a pleasant but distant memory.
At the same time, lenders are not short of appetite. With demand relatively subdued, banks and building societies are competing for a smaller pool of borrowers. We are seeing regular pricing tweaks and product launches as lenders vie for custom. That competitive dynamic is helping to keep mortgage rates from drifting higher and, in some cases, nudging them downwards despite the Bank of England holding rates yesterday.
Sellers need to price realistically and buyers remain cautious, particularly first-time buyers who are sensitive to monthly payment changes. The result is modest house price growth rather than sharp swings in either direction.
Looking ahead, much will depend on whether the expected rate cuts later this year materialise. If they do, the impact is more likely to be gradual support for affordability rather than a sudden jump in prices. Stability has returned, but enthusiasm has not and that is likely to keep price growth contained over the months ahead."
