The areas where house prices are rising the fastest as average UK property price hits new high

UK house prices have jumped to a new high, with the average property price reaching £299,138.

Amanda Bryden, Head of Mortgages at Halifax, said: "The UK housing market started the year on a positive note, with average prices rising by +0.7% in January, more than recovering the slight dip of -0.2% in December. This increase pushed the average property price to a new record high of £299,138. However, annual growth slowed to +3.0%, the slowest rate since last July.

"Affordability is still a challenge for many would-be buyers, but the market's resilience is noteworthy. There’s strong demand for new mortgages and growth in lending. With a stamp duty increase looming, some of this demand may have come from first-time buyers eager to complete transactions before the end of March.

"Despite geopolitical uncertainties, and waning consumer confidence, other key indicators look fairly positive for the housing market. The Bank of England has made its first base rate cut of the year, and there are probably more to come. Household earnings are expected to continue outpacing inflation – albeit that gap may narrow – easing some of the financial pressure still being felt from the cost-of-living squeeze.

"As things stand, mortgage rates are likely to hover between 4% and 5% in 2025, influenced by both global financial markets and domestic monetary policy. Over the past year, buyers have been getting used to this new normal, understanding that rates are unlikely to return to the historical lows of 1%.

"But the fundamental issue in the housing market remains the lack of supply. This long-term trend, coupled with a gradual improvement in affordability, should support further modest house price growth this year."

Where are prices rising the fastest?

Northern Ireland has the strongest annual property annual price growth in the UK, though at +5.9% in January this has eased from +7.3% in December. Properties in Northern Ireland now cost an average of £205,473.

In England, the North East has overtaken the North West as the region with the strongest annual property price growth, up +5.2% compared to the previous year, with properties now costing an average £178,696.

House prices in Wales were up +3.6% compared to the previous year, with properties now costing an average of £227,397.

London retains the highest average house price in the UK, at £548,288, up +2.8% compared to last year.

Scotland saw a lower rise in house prices compared to the rest of the UK, with properties in the country now worth an average of £210,690, +2.4% more than the year before.

Full list (average house price and annual increase)

Northern Ireland, £205,473, 5.9%

North East, £178,696, 5.2%

Yorkshire and the Humber, £215,764, 4.6%

North West, £239,772, 4.5%

South West, £308,424, 4.0%

West Midlands, £261,280, 4.0%

Wales, £227,397, 3.6%

East Midlands, £245,352, 3.3%

South East, £391,298, 2.9%

London, £548,288, 2.8%

Eastern England, £337,267, 2.7%

Scotland, £210,690, 2.4%