Year starts with slowdown in house prices

February 10, 2025 by Brendan O'Neill

House Prices

The new year has begun with a slight slowdown in house price growth, according to the latest figures to be released by a major UK mortgage lender.

Nationwide has published data looking at the average price of a home in the UK during January. It shows that growth in average prices eased a bit over the course of the month, when compared to the same month last year. The price growth for January 2025 was 4.1%, which took the average house price to £268,213.

The data does show that price growth remains consistent when viewed on a month-to-month basis, though. There was 0.1% growth in prices compared with December, which means the average price has now risen for five consecutive months. The last month when it failed to do so was August 2024.

The house price index released by Nationwide also reveals the average price of a UK home is 4.7% more than it was at this time in 2024. Talking to Mortgage Strategy about the figures, Robert Gardner from Nationwide said:

“The housing market continues to show resilience despite ongoing affordability pressures.”

He then added that mortgage repayments would now take up 36% of the income for someone making the UK average. Gardner pointed out that this is much higher than the 30% that stood as the average for a long time.

That last point shows why so many professionals who have the CeMAP mortgage advisor qualification are digging deeper into the specialist market. It offers the most affordable loans for many clients.