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UK January Halifax house price index +0.7% vs -0.6% m/m prior

Prior -0.6%; revised to -0.5%House price index +1.0% y/yPrior +0.3%; revised to +0.4%UK house prices nudged up slightly to start the new year, with the average property price now seen at ÂŁ300,077. For some context, that is the first time that the figure has breached the ÂŁ300,000 mark. And once again, it further exemplifies the more resilient showing in the UK housing market since last year already.Halifax notes that:”The housing market entered 2026 on a steady footing, with average prices rising by +0.7% in
January, more than reversing the -0.5% fall seen December. Annual growth also edged higher to
+1.0%, pushing the cost of the typical UK home above £300,000 for the first time.“While that’s undoubtedly a milestone figure, and activity levels show a resilient market, affordability
remains a challenge for many would-be buyers.“Broader economic conditions continue to provide some support. Wage growth has been outpacing
property price inflation since late 2022, steadily improving underlying affordability. That’s a positive
trend for buyers, and the long-term health of the market.
“And we’re now seeing more mortgage deals below 4%. If inflation continues to ease, there should be
further gradual reductions as the year goes on.
“All in all, we still think house prices are likely to edge up between 1% and 3% this year.”
This article was written by Justin Low at investinglive.com.

đź”— Source

đź’ˇ DMK Insight

UK house prices just crossed ÂŁ300,000, and here’s why that matters for traders: This milestone could signal a shift in market sentiment, especially for those trading in related assets like UK real estate investment trusts (REITs) or even the GBP. A rise in house prices often correlates with increased consumer confidence and spending, which can have ripple effects on the broader economy. If this trend continues, we might see a boost in sectors tied to housing, like construction and home improvement. On the flip side, higher property prices could lead to tighter monetary policy from the Bank of England, which traders need to keep an eye on. Watch for any signals from the BoE regarding interest rates, especially if inflation remains a concern. For now, key levels to monitor include the ÂŁ300,000 mark itself as a psychological barrier, and any significant moves above or below this could dictate short-term trading strategies. If you’re in the forex market, keep an eye on GBP/USD; a bullish sentiment in the housing market could strengthen the pound against the dollar.

đź“® Takeaway

Watch the ÂŁ300,000 level in UK house prices; a sustained move above could boost GBP and related assets, while signaling potential BoE policy shifts.

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