FX.co ★ UK House Prices Rise More Than Expected

In January 2026, the UK Nationwide House Price Index registered a 1% increase compared to the previous year. This surpassed the anticipated rise of 0.7% and marked an improvement over the 0.6% growth seen in December. On a month-to-month basis, house prices went up by 0.3%, meeting forecasts, following a 0.4% drop in December. Robert Gardner, the Chief Economist at Nationwide, noted that the housing market experienced a slowdown at the end of 2025, possibly due to uncertainties regarding potential changes in property taxes. Nevertheless, mortgage approvals remained close to pre-pandemic figures. Gardner highlighted that affordability has improved over the last year, thanks in part to earnings growth outpacing house price increases and a sustained reduction in mortgage rates, which helped maintain buyer interest. The share of first-time buyers in the market continued to grow, with many benefiting from relatively low mortgage payments. Regional disparities persisted: London experienced the most significant enhancement but was still the least affordable area, Northern Ireland's affordability declined, while Scotland and parts of the North remained relatively manageable.