Halifax House Price Index January 2022

UK house prices rose 9.7% YoY in January according to Halifax.
House prices remain at record highs, averaging 276,759 over the month.
By means of comparison, Nationwide reported that house prices accelerated by 11.2% in January.

Halifax house price index, year-on-year

Source: Halifax, IHS Markit

Key trends

House price growth slowed slightly at the start of the year, rising by 0.3% in January, the smallest monthly increase since June 2021. This followed four consecutive months of gains above 1%.
But overall prices remain c. £24,500 up on January last year, and £37,500 higher than January 2020.
Following the peak activity of 2021, transaction volumes are returning to more normal pre-pandemic levels.

Outlook

While the limited supply of new housing stock to the market will continue to provide support to house prices, it remains likely that the rate of house price growth will slow considerably over 2022.
House price rises continue to outstrip earnings growth and, affordability remains an obstacle for many. For example, a 10% deposit on a typical first-time buyer home is now equivalent to 56% of total gross annual earnings, a record high.
Household finances are also coming under pressure from sharp increases in the cost of living. The combination of high inflation and rising interest rates will likely dent consumer confidence and weigh on market activity in the months ahead.