Yorkshire house prices rise at second-quickest rate in England, new Halifax data reveals

Only the North-East’s 5.2 per cent growth rate was higher in England, with Yorkshire and Humber well above the three per cent average increase recorded across the UK.

UK house prices increased by 0.7 per cent month-on-month in January to reach a new record average high and sit just shy of £300,000. The average property price in January was £299,138, Halifax said.

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 per cent in January, more than recovering the slight dip of 0.2 per cent in December.

“This increase pushed the average property price to a new record high of £299,138. However, annual growth slowed to 3.0 per cent, 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 per cent and 5 per cent 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 per cent.

“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.”

Holly Tomlinson, a financial planner at Quilter, said: “One potential positive came on Thursday when the Bank of England cut interest rates to 4.5 per cent.

“Although the cut came as little surprise, it should continue to ease affordability and perhaps give more people the impetus to dust off any previously shelved house-buying plans.

“Lenders had already been trimming rates in anticipation of this move, and with expectations of further cuts later in the year more buyers are likely to join back into the market.”

Iain McKenzie, chief executive of the Guild of Property Professionals, said: “The decision to cut the interest rate should further improve affordability, widening the buyer pool and sustaining price growth to some degree.

“However, realistic pricing remains key, as many properties are still selling below asking price. While market conditions are strengthening, sellers should remain mindful of pricing strategies to secure deals in this evolving landscape.”