UK House Prices Rise by 0.7% in January Amid Falling Mortgage Rates

Despite the increase, affordability pressures remain a key concern, particularly for first-time buyers.

UK house prices rose by 0.7% in January, marking the strongest rate of increase in a year.
The average UK house price in January was £257,656, down 0.2% from a year earlier.
Mortgage rates are continuing to trend down, providing some relief to potential buyers.
Affordability pressures remain a key factor in the housing market, with a borrower earning an average UK income and buying a home with a 20% deposit having a monthly mortgage payment equivalent to 38% of take-home pay.
Raising a deposit remains a major challenge for first-time buyers, with a 20% deposit on a typical first-time buyer home equating to roughly 105% of average annual gross income.