Halifax House Price Index: January 2024

The January 2024 Halifax House Price Index was released earlier today – what’s the data telling us?

In January, the average house price in January was £291,029, up +1.3% or, in cash terms, £3,924 compared to December 2023. Prices have now risen for the fourth consecutive month, and pace of annual growth is now at +2.5%, the highest rate since January last year.

Kim Kinnaird, Director of Halifax Mortgages, said:

“The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market has contributed to increased confidence among buyers and sellers. This has resulted in a positive start to 2024’s housing market.”

“However, while housing activity has increased over recent months, interest rates remain elevated compared to the historic lows seen in recent years and demand continues to exceed supply. For those looking to buy a first home, the average deposit raised is now £53,414, around 19% of the purchase price. It’s not surprising that almost two thirds (63%) of new buyers getting a foot on the ladder are now buying in joint names.”

“Looking ahead, affordability challenges are likely to remain and further modest falls should not be ruled out, against a backdrop of broader uncertainty in the economic environment.”

Here’s a quick overview of what the first Halifax Price Index of 2024 tells us:

  • Average house prices rose by +1.3% in January, the fourth monthly rise in a row
  • Property prices grew +2.5% annually, the highest annual growth since January 2023
  • Typical UK home now costs £291,029, over £3,900 more than last month
  • South East England continues to see most downward pressure on house prices

The next Halifax House Price Index is scheduled for release on Thursday 7th March.

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