Market Snapshot: UK House Prices and Key Trends
It’s been an interesting start to the year for the housing market, with some significant milestones and a growing sense of stability. We’ve been reviewing the latest reports from across the UK, including a look at the Jersey market, and there are some clear trends emerging for buyers and sellers.
Here’s a quick rundown of what you need to know:
- UK Average Prices Hit a Milestone: For the first time, the average UK house price has topped £300,000, according to Halifax. While this might sound daunting, especially for first-time buyers, it’s worth noting that wage growth has actually outpaced house price inflation since late 2022, quietly improving underlying affordability. See the full report here.
- Easing Mortgage Rates & Competition: Lenders are increasingly competing for buyers, with more mortgage deals now falling below 4%. This positive shift is largely driven by hints from the Bank of England about potential interest rate cuts later this year, which should further support affordability. Find out more here.
- Market Stabilisation and Realistic Pricing: Across the board, experts note a return to market stability. In Jersey, housing experts are optimistic for 2026, observing a recovery from recent “hiccups.” Lower interest rates have boosted activity and borrowing capacity, encouraging sellers to become more realistic with their pricing, creating a more sustainable market environment. Read more here.
- Cautious Growth Ahead: While enthusiasm isn’t soaring, stability is. Halifax forecasts a modest 1-3% increase in house prices for the UK this year. This suggests gradual support for affordability rather than a sudden jump in prices, keeping growth contained. Details available here.
The Outlook:
Overall, the market appears to be finding a more stable footing. We’re seeing a shift towards more sustainable conditions, driven by easing mortgage rates, improving affordability, and realistic pricing. This creates a cautiously optimistic environment for both buyers and sellers as we move through the year.
Sources:
- Average house price tops £300,000 for first time, says Halifax
* https://www.bbc.co.uk/news/articles/c0jvjp14qjzo
- Jersey housing experts ‘optimistic’ 2026 will be good for market
