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Halifax HPI - House prices hit "record highs" up 0.7% in January

ended 07. February 2025

The housing market has kicked off 2025 with property prices hitting new record highs according to the Halifax.

  • House prices increased by +0.7% in January following a dip of -0.2% in December 
  • Average property price of £299,138 is a new record high 
  • Annual growth eased slightly to +3.0% (vs +3.4% previous month) 

Affordability is still a challenge for many would-be buyers. There’s strong demand for new mortgages and growth in lending. With a stamp duty increase looming, some of this demand may have come from first-time buyers eager to complete transactions before the end of March.

Newspage asked mortgage brokers and property experts to give their views on the latest figures, below.

5 responses from the Newspage community

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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
The housing market has kicked off 2025 with a bang, with prices hitting record highs and a stronger-than-expected monthly rise. Despite ongoing affordability challenges, the surge is being driven by a mix of improving mortgage rates, renewed buyer confidence, and a rush to beat April’s stamp duty changes. Yesterday’s base rate cut is set to further boost demand, and with lenders vying for business, the market’s resilience looks set to continue in the coming months.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
House prices appear to be the one element of the economy that is still delivering growth as the property market is off to a bright start to the year. With demand outpacing supply and the government’s plans to build 1.5 million homes seemingly no further forward you wouldn’t bet against prices continuing their upward climb in the months ahead.
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Mike Staton
Director at Staton Mortgages
Whilst this is good news for the housing market, it does not help First Time buyers as the gap between lenders affordability and the reality of the money you need to buy a home becomes a chasm. The regulatory bodies now need to look at the outdated affordability regulations in the UK as the reality is the rules are preventing many people from getting on the property ladder. The average uk wage across all industries is £36600 whilst Rightmove quoted the average uk house price in November 24 as £366592. With typical affordability at 4.49 income that means the average individual can borrow £164334. Where on earth do you get a £200k deposit from. Things need to change as we a trying to put square pegs into round holes and leaving a generation without a hope of getting on the property ladder. The rulesetters need to realise that times have changed from the days it was easy for them to get on the ladder.
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Dariusz Karpowicz
Director at Albion Financial Advice
The property market appears to be doing its best impression of a phoenix, rising from the ashes of 2024's uncertainty with a rather cheeky 0.7% increase in January. With average prices hitting a new record of £299,138, it seems the housing market didn't get the memo about economic doom and gloom.
While this uptick might have sellers breaking out the champagne, first-time buyers are likely choking on their cornflakes at the news. The recent base rate cut offers a glimmer of hope through potentially lower mortgage rates, but let's not kid ourselves - with the average UK salary sitting at £36,600 and typical lending multiples at 4.49 times income, the math simply doesn't add up for many aspiring homeowners. The impending stamp duty changes are creating a dash to the finish line for some buyers, but unless someone's found a magic money tree in their garden for that £200k deposit gap, we're still trying to fit square pegs into round holes when it comes to affordability.​​​​​​​​​​​​​​​​
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Mark Eaton
COO at April Mortgages
A rebound in house prices is good news for sellers, following a dip in December, but the last thing first-time buyers need is for the bottom rung of the ladder to move even higher.
The increase in house prices to a new record high follows a recent rise in mortgage approvals - signs that confidence is returning to the market.
However, for hopeful buyers looking to get onto the market, house price growth is making the task of buying a home even more difficult.
A fall in the base rate yesterday may lead to modest reductions in mortgage rates, but it is unlikely to drastically improve affordability for first-time buyers.
Sluggish wage growth and strict mortgage regulation are making matters worse for many borrowers, who will be feeling disillusioned by the current state of the market.
We need urgent action to help buyers bridge the affordability gap and restore balance and accessibility to the housing market.