8 January 2026
If you are covering the Halifax House Price Index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“The end of the year often leaves the housing market short on urgency, and December was no exception. With many households having already mentally parked moving plans, the late timing of the budget added a further reason for buyers and sellers to pause, leaving activity limited as attention shifted towards the New Year rather than pushing ahead before Christmas.
Against that backdrop, Halifax’s figures showing prices falling by 0.6% over the month point to a market that was subdued rather than fundamentally weakening.
On an annual basis, prices are just 0.3% higher than a year ago, reinforcing the sense that values have largely moved sideways over the past year. While demand has been cautious, constrained supply continues to limit the scope for any meaningful price correction.
A slower-moving market has important implications for mortgage pricing. With fewer borrowers coming through the door, lenders are likely to compete more aggressively for business, particularly among lower-risk borrowers. That competitive pressure should help keep mortgage rates edging lower over time, even if any improvements are gradual rather than dramatic.
For remortgagers, this shift is especially important. While many households are still facing higher repayments than a few years ago, increased competition should reduce the risk of the sharp payment shocks that have weighed on confidence.
As we move further into 2026, greater clarity following the budget and on the direction of interest rates may encourage some of the decisions that were delayed at the end of last year to begin feeding back into the market, supporting a modest pick-up in activity rather than a sudden rebound.”
