## January 2026 Sees Small Uptick in UK House Prices

According to Nationwide’s latest data, UK house prices increased by 0.3% in January 2026 after seasonal adjustment, reversing the slowdown seen in December when annual growth fell to 0.6%. On an annual basis, house prices grew by 1% in January, indicating a stabilising market following a period of subdued activity.

The average house price, measured without seasonal adjustment, stood at £270,873 in January, slightly below the £271,068 recorded in December 2025. Nationwide’s chief economist, Robert Gardner, noted that housing market activity dipped towards the end of 2025, likely due to uncertainty over potential property tax changes ahead of the Budget. Despite this, mortgage approvals for house purchases remained close to pre-pandemic levels, reflecting ongoing demand.

## Improving Affordability and Mortgage Market Trends

Affordability is improving as wage growth outpaces house price increases and mortgage rates continue to fall. This easing in borrowing costs is a positive sign for landlords and letting agents, as it may support sustained demand in the private rented sector.

Mortgage expert Karen Noye from Quilter highlighted that rapid house price growth is unlikely in the near term due to affordability constraints, even as borrowing costs ease. She described the current market as being in a “holding pattern” rather than losing momentum, suggesting cautious stability.

## Industry Perspectives on Market Momentum

Nathan Emerson, CEO of Propertymark, expressed encouragement at the housing market gaining pace in early 2026. He pointed to growing consumer confidence, more competitive mortgage deals, and an increase in homes being listed for sale as factors contributing to this positive trend.

Tom Bill, head of UK residential research at Knight Frank, observed that house prices edged higher in December following the Budget, which triggered a flurry of deals before Christmas. However, he cautioned that mortgage approvals in December were still 9% below the five-year average, indicating that demand remains fragile.

Tanya Elmaz, director of sales at Together, noted that although mortgage rates have gradually fallen over the past year, buyer confidence remained subdued towards the end of 2025 amid uncertainty following the Autumn Statement. She expects the property market to gain further momentum if inflation continues to ease and the Bank of England maintains its rate-cutting trajectory.

## What This Means for Landlords and Letting Agents

The modest rise in house prices and improving affordability suggest a cautiously positive outlook for landlords. Steady mortgage approvals and increased listings may translate into more transactions and rental opportunities. However, ongoing economic uncertainties and affordability limits mean landlords should remain vigilant and adaptable to market conditions.

For letting agents, the current environment underscores the importance of monitoring mortgage market trends and consumer confidence, as these factors directly influence demand and pricing in the private rented sector.

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Suggested internal link anchors

– UK house price growth
– mortgage approvals
– housing market activity
– property tax changes
– affordability constraints
– mortgage rates
– consumer confidence
– private rented sector
– rental market trends
– Bank of England rate cuts
– Autumn Statement impact
– property listings increase

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TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/