The UK Nationwide House Price Index rose 1% year-on-year in January 2026, surpassing the expected 0.7% and picking up from a 0.6% gain in December. On a monthly basis, prices increased 0.3%, in line with expectations, following a 0.4% decline in December. Nationwide Chief Economist Robert Gardner said housing activity dipped at the end of 2025, likely due to uncertainty over potential property tax changes, but mortgage approvals remained near pre-pandemic levels. He added that affordability improved over the past year, supported by earnings growth outpacing house prices and a steady decline in mortgage rates, helping sustain buyer demand. First-time buyer activity continued to rise as a share of purchases. Regional variations persisted: London saw the largest improvement yet remained the least affordable, Northern Ireland worsened, while Scotland and parts of the North remained relatively healthy.