Map reveals how much house prices have risen where YOU are according to Halifax – and what will happen to mortgage rates
UK house prices have hit a record high according to Halifax, ahead of major stamp duty changes.
The bank said average property prices reached £299,138 in January, a 0.7% month-on-month rise from December.
The lender, part of Lloyds Banking Group, also said annual house prices rose 3% in the year to January in its latest House Price Index (HPI), which is based on mortgage approvals.
Alice Haine, personal finance analyst at Bestinvest, said the housing market remained ";resilient" despite a weaker wider economic outlook.
She added upcoming stamp duty changes coming into effect in April had in part seen house prices rise as people rush to buy homes.
From this date, first-time buyers will have to pay stamp duty on properties worth £300,000 or more, down from £425,000.
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Meanwhile, the threshold for people buying a second home is being lowered from £250,000 to £125,000.
The latest HMRC data shows the number of home sale transactions in December totalled 96,330, up 2.9% from November's figure of 93,160.
The latest House Price Index data from Halifax also comes a day after the Bank of England opted to lower its base rate from 4.75% to 4.5%.
Markets are now predicting it will cut rates two more times in 2025, bringing them down to 4%, after they were lowered from a high of 5.25% last year.
Lowering the base rate usually sees mortgage rates fall, which also usually sees house prices rise as people have more cash in their pockets.
Alice said: "Easing inflation and two interest cuts last year - plus a third yesterday - are helping to spur demand, particularly among first-time buyers who currently consider now a good time to buy."
Amanda Bryden, head of mortgages at Halifax, said mortgage rates would likely fall to between 4% and 5% in 2025.
But, she warned a lack of housing stock remained a "fundamental issue", as demand outstrips supply.
Where are house prices rising the most?
Halifax said annual house prices rose the most in Northern Ireland, increasing by 5.9% in the 12 months to January.
However, the lender said this was down from 7.3% growth in the 12 months to December, with the average price of a property in the country now £205,473.
Meanwhile, property prices in Wales were up 3.6% in the 12 months to January, with the average cost of a home there £227,397.
Scotland again saw a lower rise in house prices compared to the rest of the UK, showing a 2.4% increase.
In England, the North East overtook the North West as the region with the strongest annual property price growth, up 5.2% between January last year and January this year.
Across the region, the average cost of a property was £178,696, Halifax said.
London remained the region with the highest average house price in the UK, with prices rising 2.8% annually.
Buyers looking for a property in the capital would have had to fork out £548,288 on average in January.
Who else tracks house prices?
It's worth bearing in mind, the Halifax HPI is just one index that monitors house prices across the UK.
Nationwide Building Society also tracks house prices, with its latest HPI for January saying the average price of a home stood at £268,213 in January, down from £269,426 the month before.
Property websites Zoopla and Rightmove also publish monthly house price data.
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Zoopla's latest HPI said house prices in December were £267,700, up 2% on an annual basis.
Meanwhile, Rightmove said average UK house prices stood at £366,189 in January - £5,992 more than in December.
How to get the best deal on your mortgage
IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time.
There are several ways to land the best deal.
Usually the larger the deposit you have the lower the rate you can get.
If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before.
Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher.
A change to your credit score or a better salary could also help you access better rates.
And if you're nearing the end of a fixed deal soon it's worth looking for new deals now.
You can lock in current deals sometimes up to six months before your current deal ends.
Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost.
But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first.
To find the best deal use a to see what's available.
You can also go to a mortgage broker who can compare a much larger range of deals for you.
Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender.
You'll also need to factor in fees for the mortgage, though some have no fees at all.
You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term.
You can use a mortgage calculator to see how much you could borrow.
Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file.
You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements.