UK house prices rose by 1.3% in the year to January 2026, down from the revised estimate of 1.9% in the 12 months to December 2025. On a non-seasonally adjusted basis, average house prices in the UK decreased by 0.3% between December 2025 and January 2026, compared with an increase 0.4% from the same period 12 months ago.
The UK Property Transactions Statistics showed that in January 2026, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 95,000, 0.8% lower than a year ago. Between December 2025 and January 2026, UK transactions decreased by 5% on a seasonally adjusted basis.
According to Nick Leeming, chairman of national estate agency Jackson-Stops, the figures represent modest growth. “The market has started the year cautiously, with January’s figures showing modest growth and underlying resilience, amid a broader slow down late last year,” he said.
“From what we are seeing on the ground, buyers are willing to proceed where value stacks up, the home is well-presented, and the price is right – realistic pricing is king in today’s market.
“Looking ahead, with the situation in the Middle East remaining volatile, and interest rate expectations shifting, we’re likely to see some buyers move to get transactions agreed sooner rather than later. As rates are expected to drift upwards through the year, buyers are acting with greater certainty that current rates are more favourable than they may be in the months ahead, creating a short-term uplift in demand even as overall activity remains cautious. However, we remain in a fast-moving situation and expectations can change by the day.
“As a result, while the spring market should see healthy levels of activity, any upward movement in values is likely to be modest and increasingly location specific.”
Colleen Babcock, property expert at Rightmove, said the figures represent a typical seasonal uplift, mirroring the property portal’s own data.
“With the number of homes for sale now at its highest level in over a decade, buyers are benefiting from significantly more choice, and that competition between sellers is becoming more apparent,” she added.
“While some movers may be taking a pause with their home-moving plans amid wider global uncertainty, overall activity has remained resilient. Sales agreed are just 3% below the busy market this time last year and still 15% ahead of 2024 levels. The market is still moving, albeit at a steadier and more considered pace as we head further into spring, despite ongoing global uncertainty.”
Nathan Emerson, CEO of Propertymark, said while growth is welcome, it would be prudent to consider the impact of the global economy on the housing market. “While it is encouraging to witness growth within the housing market year on year, it is also sensible to highlight that the coming months could represent a wind of change when considering the wider global economy,” he explained.
“Even with inflation remaining steady this month, the prospect of any base rate cut when the Monetary Policy Committee next meets does feel potentially slim, especially when considering reports that many households will likely face considerable pressure from rising fuel and energy costs across the forthcoming months.
“We have witnessed a substantial number of mortgage products, some that previously offered sub 4% rates, now being withdrawn, leaving consumers with fewer choices and generally a tighter eligibility criteria to achieve, something that has the potential to impact first-time buyers especially.”
According to Jeremy Leaf, north London estate agent and a former RICS residential chairman, conditions are increasingly uncertain.
“Deals are just about hanging together with little renegotiation so far,” he said. “But confidence will inevitably begin to ebb the longer the conflict persists. The ’no change’ in inflation and base rate was a welcome relief but have been already superseded as neither cover the impact of the recent surge in energy prices. What’s happening now and likely to happen in the near future is of far more relevance to buyers and sellers.”
