UK House Price Index Update: January 2026

The UK House Price Index is updated monthly, with March’s release reflecting changes that took place during January 2026. While the market remains relatively stable overall, this month’s data shows a slight dip in prices alongside slower annual growth.

So, here are the headlines.

The HPI Headlines

According to the latest government data, the average price of a home in the UK in January 2026 was £268,000.

On average, this reflects a monthly decrease of 0.3%, while annual house price growth slowed to 1.3%.

This suggests the market is continuing to stabilise, with modest growth replacing the sharper increases seen in previous years.

Regional Breakdown

Across England, the average property price sits at £290,000, with annual growth of 1.1% despite a slight monthly dip of 0.2%.

Performance varies significantly by region. The North West recorded the strongest annual growth at 3.1%, followed closely by Yorkshire and the Humber at 3.0%. Meanwhile, London continues to lag behind, with prices down 1.7% year-on-year, despite seeing the strongest monthly increase of 0.8%.

Elsewhere, the North East saw the sharpest monthly fall at -2.8%, highlighting how local market conditions can differ widely across the UK.

In Wales, the average house price is now £210,000, with annual growth of 2%, although prices fell 1.7% month-on-month.

What’s Happening to House Prices Near Me?

Curious about house prices in your area?

The latest data shows that while national growth is slowing, local markets are still moving at very different speeds. Some regions continue to see steady demand and price growth, while others are adjusting after stronger gains in recent years.

You can explore your local area in more detail using our House Price Index tool, where you’ll find insights on average prices, property types and recent trends.

If you’re thinking about selling or just want a clearer idea of what your home is worth, you can also book a free valuation for a more accurate, up-to-date figure.

What This Means for Buyers and Sellers

The January 2026 data points to a more balanced housing market.

For buyers, slower price growth and small monthly dips may create more negotiating power, particularly in areas where demand has softened.

For sellers, realistic pricing remains key. While demand is still present, buyers in 2026 are more data-led and less willing to stretch beyond fair market value.

Overall, the market is stabilising rather than slowing dramatically, with modest growth expected to continue through the year.

Final Thoughts

The latest UK House Price Index shows a market that is adjusting rather than declining.

With prices dipping slightly month-on-month but still rising annually, 2026 is shaping up to be a year of steady, sustainable growth rather than sharp swings.

Whether you’re buying, selling or simply keeping an eye on the market, understanding these trends can help you make more informed decisions.

If you’re planning your next move, now could be a good time to explore your options and see where you stand.