UK house prices rise in January 2026 as mortgage affordability eases

House prices in the UK increased in January 2026 while mortgage affordability pressures eased, and mortgage approvals for house purchase stayed close to pre-pandemic levels.

UK house prices rose in January 2026 while mortgage affordability pressures eased. Activity fell at the end of 2025, likely linked to uncertainty over possible property tax changes ahead of the Budget. Mortgage approvals for house purchase remained close to levels seen before the pandemic. The article notes regional differences, with Northern Ireland experiencing worsening affordability after strong price rises. Key facts: - House prices rose in January 2026, according to the article. - Mortgage affordability pressures eased, supported by lower borrowing costs and stronger real wage growth as reported. - The number of mortgages approved for house purchase stayed near pre-pandemic levels. - Housing market activity dipped at the end of 2025, likely reflecting uncertainty about potential property tax changes ahead of the Budget. - Northern Ireland recorded worsening affordability over the past year, attributed to robust house price increases in the region. - Commentators cited a quarter-point Bank of England rate cut in December and said markets expect the Bank to hold at the next decision while it assesses fresh data. Summary: Rising prices together with easing affordability have been linked to renewed buyer confidence and a modest rebound in early 2026, the article reports. Housing activity could recover further in the coming quarters if the improving affordability trend continues, though rate decisions and political developments are noted as influential on market momentum. Markets are expecting the Bank of England to hold at the upcoming meeting as it digests new data.