The latest Halifax house price index showed a small uptick in average home prices in January. Notably, the average selling price topped the £300,000 level for the first time.
‘STEADY FOOTING’
Average UK house prices rose by 0.7% in January compared with December and 1% compared with the previous year. The average price touched £300,077, a new milestone for the survey.
‘The housing market entered 2026 on a steady footing’, commented Halifax head of mortgages Amanda Bryden. However, while activity levels showed a resilient market, ‘affordability remains a challenge for many would-be buyers’ added Bryden.
The building society sees house prices rising between 1% and 3% this year. As inflation eases, mortgage rates should fall which will improve affordability.
BELLWAY FIRST UP
The first of the housebuilders to report earnings is Bellway (BWY), on Tuesday 10 February, followed a day later by Barratt Redrow (BTRW). Bellway shares are down 4.7% year-to-date while Barratt Redrow shares are up 2% so far.
Bellway, whose financial year ends in July, will present a trading update for the six months to the end of January. The firm completed 8,749 homes in FY25, an increase of 14%, and investors will be hoping for a further rise this year.
The company’s average selling price in FY25 was £316,412, slightly above the previous year and the latest Halifax reading. Thanks to the increase in volumes, operating profit, earnings and dividends were up by just under 30%.
BARRATT REDROW UPDATE AWAITED
Barratt Redrow has a June year-end and will be presenting its 1H results next Wednesday. The firm issued a trading update in early November saying it delivered a ‘resilient’ performance despite ‘challenging’ market conditions.
Home completions in the first 17 weeks of FY26 were 3,665, up 8% on the same period a year earlier. That left the group 60% forward sold in terms of this year’s private home completions.
The forward order book including JVs totalled 10,669 homes and the firm stuck to its FY target of 17,200 to 17,800 completions. The company also maintained its FY guidance saying it was ‘well positioned’ for the second half.
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