Residential property price growth in the UK has slowed over the year to January 2026, according to the latest data from the Office for National Statistics (ONS).

Average UK house prices rose 1.3% over the 12 months, reaching £268,000, down from 1.9% growth in the year to December 2025.

Regional figures show prices at £290,000 in England (up 1.1%), £210,000 in Wales (up 2%), and £188,000 in Scotland (up 1.3%) over the same period.

Industry reaction: 

Iain McKenzie, CEO of The Guild of Property Professionals: “The latest ONS House Price Index shows that the pace of house price growth is moderating, with annual inflation easing to 1.3% in January. While values are still rising across all UK nations, the slowdown from December’s 1.9% underlines the more measured and price-sensitive market conditions we’ve been seeing on the ground.

“An important factor behind this is the steady increase in housing supply. With around 6% more homes currently on the market than a year ago, and further listings expected in the coming months, buyers now have greater choice. This is helping to keep upward pressure on prices in check, particularly in areas where affordability is already stretched.

“In this environment, pricing correctly from the outset is more important than ever. 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-value markets generally moving more slowly than more affordable locations.

“Overall, the market remains resilient, but it is increasingly defined by balance, more supply, cautious buyers and a continued focus on affordability. For both buyers and sellers, informed decision-making and realistic expectations will be crucial as we move through the year.”

Damien Jefferies, founder of Jefferies London: “Over the last year, uncertainty has become a consistent theme with respect to property market sentiment, but despite this, we’ve seen a continued show of resilience where house prices are concerned.

Buyers and sellers are pressing ahead, undeterred by higher mortgage rates and wider political instability and, whilst the current Iran conflict adds a further layer of uncertainty for 2026, we expect the domestic market to continue showing signs of increasing positivity.”

Verona Frankish, CEO of Yopa: “Interest rates haven’t reduced at the rate many homeowners and buyers would have hoped for, but what the current landscape is providing is stability and this is key 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 isn’t moving at the pace of previous years, but certainly isn’t in decline either.”

Marc von Grundherr, Director of Benham and Reeves: “The latest figures for January show that whilst it may be a new year, the UK property market has remained predictably consistent.

“House prices are holding firm and have continued to edge up on both an annual basis despite some month to month fluctuation.

“This more measured rate of growth suggests a market that is building momentum on a far stronger foundation when compared to the sharp rates of inflation seen in previous years.

“London has also shown one of the strongest rates of monthly growth, suggesting that whilst the market may be more subdued than the wider national picture, the tide could be now turning.”

Nathan Emerson, CEO of Propertymark: “While it is encouraging to witness growth within the housing market year on year, it is also sensible to highlight that the coming months could represent a wind of change when considering the wider global economy.

“Even with inflation remaining steady this month, the prospect of any base rate cut when the Monetary Policy Committee next meets does feel potentially slim, especially when considering reports that many households will likely face considerable pressure from rising fuel and energy costs across the forthcoming months.

“We have witnessed a substantial number of mortgage products, some that previously offered sub 4% rates, now being withdrawn, leaving consumers with fewer choices and generally a tighter eligibility criteria to achieve, something that has the potential to impact first-time buyers especially.”

Jason Tebb, president of OnTheMarket: “Property values continued their steady rise on an annual basis in January, with the average price £3,000 higher than a year ago. Increased confidence and activity resulted in a strong start to the year for the housing market, thanks to post-Budget clarity, although prices increases are being kept in check by increased stock, more choice and continued affordability concerns.

“Although a little dated, these numbers reveal wide regional disparities behind the average prices. Values in London continue to contract, by 1.7 per cent in the 12 months to January, due to increased supply and stretched affordability in the capital where property prices tend to be considerably higher than other parts of the country.

“Inflation steady at 3% for a second consecutive month in the year to February would not normally be a cause for concern but since then, the inflationary pressures created by the Middle East conflict have removed market expectations of further base-rate cuts with suggestions of rises instead.”