UK House Prices Rise 0.3% in January 2026

UK house prices rose modestly in January 2026, signaling an early rebound in the property market after uncertainty surrounding the previous year's budget, according to data from Nationwide Building Society.

The average price of a home increased by 0.3 percent month-on-month, after seasonal adjustments, reaching 270,873 pounds. This marked a reversal from a 0.4 percent decline in December and brought annual growth to 1 percent, up from 0.6 percent the prior month. The figures reflect a non-seasonally adjusted rise of 2,660 pounds from January 2025.

Nationwide attributed the uptick to renewed buyer confidence following the Autumn Budget, which had fueled rumors of property tax increases but ultimately introduced only a mansion tax on homes worth more than 2 million pounds, set to begin in April 2028. Housing market activity had softened in late 2025 amid these concerns, with mortgage approvals for purchases dipping 9 percent below the five-year average in December. However, approvals remained near pre-pandemic levels overall, indicating underlying resilience.

Improved affordability played a key role in the January pickup. Earnings growth has outpaced house price rises over the past...