Residential property price growth in the UK is set to slow until January 2026, according to the latest data from the Office for National Statistics (ONS).
Average house prices in Britain rose by 1.3% over the past 12 months, to £268,000, which is down from a rise of 1.9% in the year to December 2025.
Regional figures show prices in England at £290,000 (up 1.1%), Wales at £210,000 (up 2%), and Scotland at £188,000 (up 1.3%) over the same period.
Industry response:
Ian McKenzie, CEO of The Guild of Property Professionals: “The latest ONS House Price Index shows that the pace of house price growth is slowing, with annual inflation slowing to 1.3% in January. While prices are still rising across all UK counties, the deceleration from December’s 1.9% underlines the more measured and price-sensitive market conditions we are seeing on the ground.
“A key factor behind this is the continued increase in housing supply. There are currently about 6% more homes on the market than a year ago, and with more listings expected in the coming months, buyers now have more choices. This is helping to keep upward pressure on prices under control, especially in areas where affordability is already stretched.
“In this environment, it is more important than ever to get the pricing right from the start. Sellers who understand their local market and set realistic expectations are still achieving sales in good time, with the average property in England and Wales taking around 40 days to find a buyer. However, we continue to see clear regional differences, with higher priced markets generally moving more slowly than more affordable locations.
“Overall, the market remains resilient, but is being defined by bullish rebalancing, excess supply, cautious buyers and a continued focus on affordability. For both buyers and sellers, informed decision making and realistic expectations will be important as we move through the year.”
Nick Leeming, chairman of national property agency Jackson-Stops: “Markets have started the year cautiously, with January data showing modest growth and underlying resilience amid a broader recession late last year.
“What we are seeing on the ground is buyers are keen to move up where value appreciates, the home is well presented, and the price is right – realistic pricing is king in today’s market.
“Looking ahead, the situation in the Middle East remains volatile, and interest rate expectations are changing, we may see some buyers moving to agree transactions as soon as possible. As rates are expected to move upwards during the year, buyers are acting with greater certainty that current rates are more favorable than expected in the coming months, leading to a short-term increase in demand, even as overall activity remains cautious. However, we remain bullish. We remain in this situation and expectations can change from day to day.
“As a result, while the spring market should see a healthy level of activity, any increases in values are likely to be modest and increasingly location specific.”
Damian Jefferies, Founder of Jefferies London: “Over the past year, uncertainty regarding property market sentiment has become a persistent theme, but despite this, we have seen a continued display of resilience regarding house prices.
Undeterred by high mortgage rates and widespread political instability, buyers and sellers are moving ahead and, while the current Iran conflict adds another layer of uncertainty to 2026, we expect the domestic market to continue to show signs of growing positivity.
Verona Frankish, CEO of Yopa: “Interest rates have not fallen at the rate that many home owners and buyers would have hoped for, but what the current landscape is providing is stability and this is important when it comes to the health of the UK property market.
“This is being reflected in the current rate of house price growth which suggests a market that is not moving at the pace of previous years, but certainly not in decline either.”
Mark von Grundherer, Director of Benham & Reeves: “The latest figures for January show that although it may be a new year, the UK property market remains predictable.
“Home prices remain stable and continue to rise on an annual basis despite some month-on-month fluctuations.
“This more measured rate of growth indicates a market that is building momentum on a much stronger base than the faster rates of inflation seen in previous years.
“London also showed one of the strongest rates of monthly growth, which suggests that while the market may be more vulnerable than the broader national picture, that may now be changing.”
Nathan Emerson, CEO of PropertyMark: “While it is encouraging to see growth in the housing market year on year, it is also prudent to highlight when considering the broader global economy that the coming months may represent a wind of change.
“Even with inflation remaining stable this month, the chances of any base rate cut at the next meeting of the Monetary Policy Committee seem potentially slim, especially considering reports that many households will face considerable pressure from rising fuel and energy costs in the coming months.
“We have seen a large number of mortgage products, some that previously offered rates as low as 4%, are now being withdrawn, leaving consumers with fewer choices and generally a stricter eligibility criteria to obtain them, something that has the potential to particularly impact first-time buyers.”
Jason Tabb, President of OnTheMarket: “Property values continued to rise on an annual basis in January, with the average price being £3,000 higher than a year earlier. Increased confidence and activity has resulted in a strong start to the year for the housing market, thanks to post-Budget clarity, although price gains are being kept in check due to increased stock, greater choice and continued affordability concerns.
“Although slightly out of date, these figures reflect the wide regional disparities behind average prices. Values in London continued to fall by 1.7 per cent in the 12 months to January, driven by rising supply and extended affordability in the capital, where property prices remain significantly higher than in other parts of the country.
“Inflation holding steady at 3% for the second consecutive month by February would normally not be cause for concern, but since then, inflationary pressures created by the Middle East conflict have dashed market expectations of further base-rate cuts and instead suggested increases.”