The average price of a house in the UK has risen above £300,000 for the first time, as buyers have returned to the market after a December dip.

The milestone will be welcomed by homeowners who, on average, will have seen the price of their property reach new highs. But for prospective buyers, the growth will depress affordability even more.

House prices increased by 0.7% month-on-month between December and January, bringing the average price of a home to £300,077, new data from Halifax shows.

The January rise also reversed December’s 0.5% fall, giving house price growth a strong start in the new year.

Meanwhile, the annual rate of house price growth edged higher to 1%, between January 2025 and January 2026, up from 0.4% in December.

Quarterly growth in the three months to January was effectively flat, rising by just 0.1%.

Amanda Bryden, head of mortgages at Halifax, said the “housing market entered 2026 on a steady footing,” with activity levels showing the market has stayed resilient despite the ups and downs of recent years.

The average price of a house has risen by 5.7%, or around £16,000, over the past three years, significantly lower than the growth seen during and just after the coronavirus pandemic.

House price growth between 2023 and 2026 was restricted as higher interest rates and stretched affordability pushed down demand and kept house price growth muted.

In contrast, the three years between 2020 and 2023 saw prices increase by almost 19%, or around £44,000, as buyers embraced the low cost of borrowing.

Despite house price growth being relatively low in the last three years, Bryden believes the market’s health is set to get better.

She said: “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.

Affordability worsens as house prices rise

While rising house prices will be welcome news for those who already own a house, it is less good news for those who are trying to become homeowners.

With increasing prices, those attempting to get onto the housing ladder are having a more difficult time putting together enough savings for a deposit, and seeing more of their income being spent on mortgage payments.

However, Bryden says there are signs that affordability could increase this year, even while house prices shoot over the £300,000 milestone.

She said: “Affordability is still a challenge, but stronger wage growth and falling mortgage rates have helped relieve some of the pressure in recent years.

“We expect that improvement to continue in 2026, meaning that with the right support and advice, home ownership should become a realistic prospect for more would-be buyers.”

She added that while the headline numbers may be daunting for first-time buyers, most will be looking for smaller properties at a price point significantly lower than the average.

“Many locations offer far more accessible price points, especially in northern regions where homes can often be found for under £200,000.”

Regional house price performance differences deepen

Large price differences between different regions in the UK are not a new phenomenon, but they have become more pronounced in recent years as the divide between house prices in the north and south has deepened.

Northern regions and the devolved nations have consistently experienced strong house price growth as demand has remained high, while some regions in the south have seen price growth stall or even reverse.

The UK region that experienced the highest annual price growth was Northern Ireland, where prices increased by 5.9% in 2025, meaning the typical house there now costs £217,206.

Scotland also experienced high annual price growth of 5.4%, bringing the average price of a house in the nation to £221,711.

As for England, its northern regions and the Midlands were the only places where house prices grew in the past year.

The North West leads the way, as the average price of a house there increased by 2.1% to £244,329, while the North East saw prices increase by 1.2% to £181,198.

Not a single southern region saw the average price of a home increase in 2025.

The two worst-performing regions were the South West and South East, where average prices fell by 1.6%.

Greater London also suffered shrinking price growth, as the average house there is now 1.3% lower than it was a year ago, bringing it to £538,600.

Source: Halifax, 6 February

The number of “green mortgage” deals available to homeowners is growing – but how do they work, and who qualifies for one?

Most high-street lenders now offer some kind of green mortgage. They are usually focused on the energy efficiency of homes, and there are two main types.

The most common approach is to offer those buying a property with a high energy performance certificate (EPC) rating, typically A or B, a slightly better mortgage deal. For example, a lower mortgage rate, cashback or a cheaper fee.

The other type is an incentive for homeowners who want to improve the efficiency of their property. This could be a preferential interest rate for additional borrowing to fund things like solar panels or heat pumps, or cashback once the improvements are complete.

Last year, Virgin Money launched a retrofit mortgage offering borrowers up to £15,000 cashback to go green. This has now been reduced to £10,000.

Nicholas Mendes, mortgage technical manager at the broker John Charcol, tells MoneyWeek: “Ten years ago, there were hardly any green mortgages. Now more than half of lenders have one.” According to Moneyfacts, there were a total of 765 green mortgages on the market in mid-August.

Research by the Green Finance Institute, which launched the Green Home Finance Roadmap in August to encourage sustainability across the UK mortgage market, found that half of all homeowners would use a green mortgage to help them buy or upgrade to a more energy-efficient home.

With house prices rising, it makes sense to see if you could save money with a green mortgage, particularly if you’re buying an energy-efficient property, or would like to make home improvements like adding insulation, double glazing or solar panels.

About 1.5 million dwellings in England now have solar panels – nearly 6% of dwellings – according to Nationwide.

We look at how green mortgages work, who’s eligible, and whether they represent the best deal on the market.

How do green mortgages work?

A common misconception with green mortgages is that they are more environmentally friendly than conventional mortgages, or that the lender is “green”.

However, the “green” in green mortgages refers to the requirements needed to qualify for the deal.

“It does not mean that your mortgage lender will be investing your payments into green initiatives or schemes,” notes Terry Higgins, managing director of TNHG New Build Mortgages.

About 80% of UK homeowners admit they are not familiar with green mortgages and the benefits they offer, according to a survey by David Wilson Homes.

Higgins gives the following definition: “Green mortgages are designed to reward people living in energy-efficient homes or people carrying out green home improvements, and they can come with various benefits, including cashback, lower interest rates, and potentially the ability to borrow more."

Note that green mortgages have lots of different names, such as Green Reward, Green Living Reward and Retrofit Mortgage.

Who is eligible for a green mortgage?

Green mortgages aimed at home buyers are generally only available for properties with an EPC rating of A or B.

Some lenders will look at the standard assessment procedure (SAP) rating – the methodology behind the EPC – to determine if a property is eligible for its green mortgage.

For example, Nationwide offers a Green Reward for homes depending on their SAP rating. Those rated an SAP of 86-91 will receive £250 cashback and those above 92 receive £500 cashback.

Some green mortgages are restricted to new-build homes that are energy-efficient.

Mendes says that eligibility is a barrier with these products. “Most deals are limited to EPC A or B properties, which means new-builds dominate. Older homes rarely qualify, with fewer than 10% of pre-1900 houses even reaching a C rating,” he says.

In terms of cashback rewards for homeowners making energy-efficiency improvements, you usually have to have your mortgage with that lender to begin with. If you want to install, say, a heat pump or solar panels, you can then look to see if your mortgage provider is offering any cashback.

Some lenders offer lower interest rates or even interest-free borrowing for customers that want to fund green home improvements.

Before applying, you’ll need to check whether your home improvement meets the eligibility criteria, as well as any other terms and conditions.

What green mortgages are available?

Some lenders offer cashback to home buyers taking out their green mortgage.

David Hollingworth, associate director at the broker L&C Mortgages, highlights HSBC, which offers £350 cashback for energy-efficient homes with an A or B rating, while Halifax applies £250 cashback. Nationwide pays out cashback of up to £500.

NatWest offers an improvement to the product pricing, often offering deals with the lowest rates but with reduced fees. For example, it currently offers a two-year fixed rate at 3.88% for purchases up to 60% loan-to-value (LTV) with a £1,495 fee. Those buying a property with an A or B EPC rating can have the same rate but with a lower £995 fee, says Hollingworth.

Barclays offers green mortgages for new-build properties. It has a green deal five-year fix at 3.95% to 60% LTV with £899 fee.

On average, green mortgage rates are lower than standard mortgage rates.

For homeowners making energy efficiency improvements, Nationwide offers interest-free borrowing for two years or five years on a loan worth up to £20,000 for eligible green improvements. This includes a boiler upgrade, solar panels, air source heat pumps, cavity wall insulation, double glazing or replacement windows, electric car charging point and loft insulation. You need to have a Nationwide mortgage to apply.

Meanwhile, Coventry Building Society has preferential further advance rates for eligible improvements.

Halifax offers cashback of up to £2,000 to existing mortgage customers that complete efficiency improvements with its Green Living Reward. The maximum is paid out to those installing a heat pump, £1,000 cashback is paid out for solar panels or a battery, while £500 is awarded for other energy-efficient home improvements.

Virgin Money’s Retrofit Boost Mortgage is slightly different as it involves taking out a mortgage, with a higher interest rate than its standard products, and then getting up to £10,000 cashback that must be spent on eligible improvements to the property being mortgaged.

Is a green mortgage the best deal for me?

A green mortgage deal can look tempting, especially if it undercuts the mortgage rate on the lender’s other products, or perhaps offers a lower fee or some cashback.

However, against the wider market, it might not be the cheapest deal for you.

Mendes comments: “Day to day, we often find that while these products look competitive against a lender’s own range, they aren’t the very cheapest on the wider market. Many high-street lenders will beat competition on price, even without a green badge.”

Hollingworth echoes this: “It’s always important to consider the wider market rather than head straight for a green mortgage. Whilst it could offer a better option, there could still be lenders without a green badged deal that could be more competitive.”

While the Moneyfacts data shows that on average, green mortgages have lower interest rates than non-green deals, Rachel Springall, finance expert at the website, agrees that homeowners and first-time buyers shouldn’t immediately assume that a green mortgage is the best option.

“Green mortgages are a niche part of the mortgage sector and navigating them could be a bit tricky as some might not be the best package for a particular borrower. The incentives offered on green mortgages are mixed, so it would be wise for borrowers to go through the options with a broker,” she notes.

Looking ahead, government targets for net zero housing and lenders’ own pledges, such as NatWest and Nationwide aiming for half their mortgage books to be at EPC C or better by 2030, mean there will be more development in this space, according to Mendes.

“There is genuine momentum, although politics could shift the pace,” he says.

“Right now, green mortgages are more about signalling direction of travel than changing the game on affordability. If incentives strengthen through bigger rate discounts or government support, they could become a much more meaningful part of the market.”

House prices rose by 0.4% in July, the biggest monthly increase since the start of the year.

The average UK property now costs £298,237, according to Halifax. The lender said house prices have risen by 2.4% over the past year, with Northern Ireland continuing to record the strongest annual price growth.

Amanda Bryden, head of mortgages at Halifax, says that while the national average is close to a record high, prices vary widely across the country depending on a number of factors, such as location and property type.

She adds: “Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.”

The UK housing market has been sluggish this year, with house price declines seen in February, March and May, according to Halifax’s house price index.

While Halifax says prices rose last month due to a resilient housing market and plenty of activity, Rightmove reports a “July slump”, with asking prices for UK properties falling by 1.2%, marking the biggest drop ever recorded by the firm.

However, the property website interprets the dip as showing that sellers are enticing buyers with more competitive deals during the traditionally slow summer period. The number of sales agreed upon is 5% higher than last year, suggesting realistic pricing is the key to selling a home.

Both sets of data are good news for a property market that has struggled with expensive mortgages and stamp duty hikes earlier this year.

We look at whether house prices will continue to rise in 2025, and which regions have seen the highest property price inflation so far.

Which regions have seen the highest house price growth?

Northern Ireland continues to be the strongest performing nation or region, with house prices rising by 9.3% over the past year (compared to a UK average of 2.4%). A typical home now costs £214,832.

Scotland also recorded positive house price growth in July, increasing by 4.7% with average prices now at £215,238.

Property prices in Wales saw a rise, up 2.7%, to an average of £227,928.

Among regions in England, the North West and Yorkshire and the Humber have the highest rate of property price inflation, up 4% over the past year to £242,293 and £215,532 respectively.

The South West, and London and the South East, continue to see moderate growth, with prices rising by just 0.2% and 0.5% respectively over the past 12 months. London remains the most expensive part of the UK. The average home in the capital costs £539,914.

What’s the outlook for UK house prices?

Most experts expect house prices to continue to rise this year. Halifax is forecasting “a steady path of modest gains through the rest of the year”.

The outlook will depend on whether the Bank of England cuts interest rates again, the supply and demand balance within the housing market, and affordability pressures.

Tomer Aboody, director of specialist lender MT Finance, comments: “Lower mortgage rates, combined with sellers pricing more sensibly even though the national average house price is close to a record high, is encouraging buyers to transact and take advantage of finding themselves in a reasonably strong position.

“With at least one more rate cut expected this year, both buyers and sellers are hoping for a strong second half of the year.”

Tom Bill, head of UK residential research at Knight Frank, notes that while the housing market is “getting back on its feet following the disruption of April’s stamp duty cliff edge”, high levels of supply are keeping prices in check.

“We expect low single-digit annual growth by the end of the year but that depends on the content of the Autumn Budget,” he added. “Some parts of the economy are already adopting the brace position and buyers could begin to hesitate after the summer if speculation over tax rises persists.”

Property buyers do have some good news in terms of falling mortgage rates and changes to mortgage rules.

Thomas Lambert, financial planner at Quilter, explains: “The Financial Conduct Authority has announced changes to its mortgage rules, easing affordability requirements for customers looking to switch to cheaper deals or reduce the term of their mortgage. Removing the need for a full affordability assessment in certain cases, such as reducing mortgage terms or switching to a more affordable product, should help borrowers make financially beneficial changes with less friction.”

The government’s new permanent 95% mortgage guarantee scheme will also help first-time buyers and home movers buy a home with a deposit of just 5%.

Not all banks are equal, so it’s no wonder that Brits are compelled to switch accounts in search for something better.

That could be anything, whether it’s a bank switching offer with a lucrative cash bonus, access to a bank branch, higher interest rates or spending benefits.

The latest Current Account Switch Service (CASS) data shows that more than 12.4 million switches have taken place since the service launched in 2013, with over a million switches made in 2025.

We look at the most popular banks that customers switched their accounts to, what made them move, and whether you should switch banks.

Which were the most popular banks in 2025?

Nationwide again proved to be the most popular banking company that customers switched to between July and September. The building society amassed the highest net switching gains (41,450).

It was followed by Monzo in second place (9,934), and NatWest in third (8,731).

We’ve compiled a list of the top banks and building societies in terms of net gains in a table below.

Customer data from the Current Account Switch Service is published three months in arrears, which is why the data here is from July to September, and not October to December.

Source: Current Account Switch Service. Data shows the number of full account switches completed between 1 July and 30 September, 2025

Of the banks and building societies listed above, four have had cash bonuses for customers switching their accounts. This includes Nationwide, First Direct, NatWest and TSB.

Nationwide’s lucrative year-round offers, such as the £100 Fairer Share bonus, which it has offered for three consecutive years now, the Thank You bonus, and member-only savings products, may have proved attractive to a large number of customers.

Meanwhile, Monzo paid customers up to £50 to refer a friend, which may have driven its popularity.

Which were the least popular banks in 2025?

While a few banks gained new customers, a lot more lost out.

Santander saw the biggest losses (-19,989), as 42,609 switches were made from the high street bank, while it gained 22,620 new customer accounts.

In second place is Halifax with a net loss of -17,341, while Chase had a net loss of -7,623. Chase lost out on many customer accounts after axing its easy access saver rate.

In the table below, we list the banks that suffered from the highest net losses between July and September.

Source: Current Account Switch Service. Data shows the number of full account switches completed between 1 July and 30 September, 2025

Access to online or mobile banking was the most frequently cited reason for choosing a new account, mentioned by 44% of respondents. This was followed by better customer service (36%), attractive interest rates (34%), spending benefits (28%) and other benefits or features (28%).

It comes after more than £31 billion was left in savings accounts paying 1% interest or less, with savers being urged to switch to an inflation-beating savings account.

Should you switch your bank account?

Switching has now become easier than ever before. According to the Current Account Switching Service data, 93% of customers in the last three years were happy with the switching process.

If you use CASS, it takes seven days for the switch to complete. It makes sure that your direct debits, standing orders, and any new payments to your old account are transferred automatically, even after you’ve switched.

However, that doesn’t always mean that moving your money to another account will be the best option for you. It’s always best to consider the long-term value of a current account, like whether you’re getting better customer service, how much you’ll incur in fees or charges, and if you have access to physical branches.

Depending on the type of account you hold, your bank may already be offering better savings rates, travel perks, or spending benefits. So if you’re switching for the cash incentive alone, it might not be worth it in the long run.

We look at whether switching banks can affect your credit score in a separate piece.

The housing market could benefit from house prices and interest rates remaining flat, Halifax claims.

Its latest House Price Index (HPI) showed UK prices fell marginally month-on-month to an average of £288,688. With interest rates remaining frozen at a 16-year-high of 5.25% and mortgage rates plateauing after months of increases, the lender said buyers and sellers should have a “degree of confidence.”

Other house price indices have shown a spring bounce has taken place, with Nationwide and the Office for National Statistics both reporting uplifts in property prices. Rightmove found asking prices hit a record high last month.

It comes as experts have predicted that the market will be relatively unaffected by the general election campaign. But changes could be on the way after the Labour Party said it would introduce a Freedom to Buy scheme if it forms the next government. The Conservatives have promised not to hike stamp duty if they are re-elected at the ballot box.

Halifax: UK house prices ‘have not seen a spring bounce’ 

The latest property research from Halifax has shown the average UK house price fell 0.1% (£174) from £288,862 in April to £288,688 in May. It means the UK average has remained relatively static for a third consecutive month.

Year-on-year, prices rose 1.5% - an acceleration of price inflation on April’s data, which showed growth of 1.1%. But this jump came as a consequence of house prices dropping almost 2% in May 2023.

The highest growth figures were seen in the North West, where prices rose 3.8% annually to an average of £232,258. Northern Ireland was not far behind, posting an annual increase of 3.2% - a slight drop on the 3.3% yearly growth it recorded in April.

Scotland’s housing market also experienced above-average inflation, Halifax found, with a rate of 1.9%. But Wales saw its rate of growth slide from 1.1% the previous month to 0.7%, meaning house prices in the nation are now £219,483.

The biggest decline was seen in Eastern England, where prices fell 0.8% year-on-year to an average of £329,853. Meanwhile, London remained relatively static, with prices going up just 0.2% annually to a still-expensive price tag of £536,821.

House prices unlikely to change significantly anytime soon, Halifax says

Reacting to the latest figures, Amanda Bryden, the head of mortgages at Halifax, says: “Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook. This has been reflected in a broadly stable picture in terms of property price movements, with the average cost of a property little changed over the last three months.

“A period of relative stability in both house prices and interest rates should give a degree of confidence to both buyers and sellers. While homebuyers and those remortgaging will continue to respond to changes in borrowing costs, set against a backdrop of a limited supply of available properties, the market is unlikely to see huge fluctuations in the near term.”

Capital Economics, which said the economic consensus was that house prices on Halifax’s HPI would rise 0.2% month-on-month, warned mortgage rate rises have “a little further to go” as a result of a delay in interest rate cuts caused by the election. It added: “[This has] fed through to a rise in the interest swap rates that mortgages are priced off. As a result, in the near term, house prices will stagnate at best.”

According to comparison website Moneyfacts, the average two-year fixed mortgage deal was 5.95%, while a typical five-year fix stood at 5.52% - 0.01 percentage points up on the day before. There were 6,656 products available to buyers and remortgagers.

In the longer term, Capital Economics said falling inflation and future base rate reductions could reduce mortgages to the extent that there is a “renewed impetus” in prices in 2025. The consultancy said we could see growth of 5% next year.

This outlook was echoed by Nicky Stevenson, managing director of estate agency group Fine & Country, who said: “With inflation easing, there should soon be more confidence in household budgets, allowing buyers to aim higher for their desired home. Recent transaction figures also revealed a fourth consecutive month-on-month increase in April, with more people seeing sales through to completion.

“For sellers, increased demand for homes means they can hold firm on their asking prices. While this might not be welcome news for buyers - especially first-timers - an anticipated interest rate cut this summer could provide some relief in the coming months.”

Professional body Propertymark was also positive. Its chief executive Nathan Emerson said the UK market “seems to be generally moving in the right direction”. But he also warned: “With a general election now on the horizon, there may be potential caution from buyers and sellers, especially those hoping to step onto the housing ladder for the first time, as they await any announcements regarding government support. People will also be carefully awaiting the Bank of England’s next announcement this month.”

Choosing the best bank for your money isn’t always straightforward. From switching incentives and customer service to branch access, spending benefits and the interest rates on offer, there’s a lot to weigh up before deciding where your cash goes.

We look at the most and least popular banks in a separate guide, where Nationwide stood out thanks to its lucrative cash bonus, Fairer Share payments and top savings rates.

New analysis from Which? sheds light on the best and worst UK banks and bank accounts.

We look at the winners and losers, so you can see where your provider sits.

The best UK banks – how they rank

Which? asked thousands of customers how they would rate their banking providers. The data is based on several parameters, including ease of application and service in a bank branch, over the phone, online and app-based, and customer helplines.

In top place is Starling Bank, which is one of Which?’s recommended providers for the seventh consecutive year. The bank ranks highly in customer service and current account users are happy with its online banking service. Starling also launched a new AI banking tool that helps customers learn more about their spending habits.

Monzo is another one of Which?’s recommended providers. The challenger bank impresses customers with fee-free spending abroad, cashback on eligible spending and competitive savings rates, but falls short in customer helpline services.

First Direct is also in the top rankings – it’s one of only two banks which received full five stars for customer service and telephone banking. It also offers fee-free transactions abroad, and has an attractive bank switching deal.

Among more traditional high street staples, Nationwide ranks highly thanks to its extensive branch network. The building society has pledged to protect its branches from closures until at least 2030.

We look at the full results in the table below.

Source: Which? data based on a survey from September 2025. N/A means not enough responses for a star rating.

The best UK bank accounts – how they rank

Which? has analysed different bank accounts offered by bank and building societies. The parameters it has tested include interest paid, fee-free spending, interest-free overdraft and monthly fee.

Source: Which?. N/A means not enough responses for a product rating.

How to choose the best bank account for you

Despite the above findings, banking expert at Which?, Chiara Cavaglieri, says: “For too long, the biggest banks haven’t had to work very hard to keep customers, but challengers such as Monzo and Starling have quickly made their mark. They’ve forced bigger providers to innovate, and the result is a market where different providers shine in different areas. Even if you can’t bear to ditch your longstanding bank, think about what's important to you.”

With so many accounts to choose from, there are several factors to consider before you make a decision.

While a bank switching deal means customers have extra cash to cover the Christmas festivities, Rachel Springall, finance expert at Moneyfactscompare.co.uk, warns against making hasty decisions.

“An upfront free cash injection is a great sweetener, but consumers should only ever switch accounts if the new deal offers them better value,” she said, pointing out that while free cash offers don’t last forever, customers shouldn’t feel pressured to switch.

If you’re after spending perks and travel benefits, it might be worth checking out the best packaged bank accounts.

Springall said: “If customers opt into a packaged account, one that bundles in benefits, then they could find it to be more cost-effective than taking out separate insurance policies elsewhere, like travel insurance or mobile phone insurance.”

We look at whether travel insurance is worth it in a separate guide.

“There is a plethora of different benefits to choose from, such as high interest current accounts, those with a competitive overdraft tariff, as well as packaged accounts with integrated insurance plans or even accounts that reward savers or spenders,” Springall added.

“Those consumers who plan to make frequent trips abroad can also find accounts that don’t charge them for using their debit card in an ATM or in-store, so they can avoid paying out on transaction fees compared to a more traditional bank account.”

FSCS scheme: Are your savings safe?

The Financial Service Compensation Scheme (FSCS) protects your savings and investments if a financial services firm goes bust.

This includes current accounts, savings accounts, Shariah-compliant accounts, ISAs, and more.

On 1 December 2025, the FSCS limit rose from £85,000 to £120,000. It means that you will be covered for up to £120,000 if your money is with an FSCS-protected institution.

You can check which institutions are covered on the FSCS website.

House prices in 2023 have been sliding, and in September, the average house price fell by -0.4%, the sixth consecutive fall this year. But the pace of the monthly decline has slowed; in August, the slide was -1.8%, which was the biggest drop seen in house prices since 2009. On an annual basis, property prices dropped by -4.7%, versus -4.5% last month.

The latest Halifax house price index data means a typical home now costs £278,601 - a drop of around £1,200 from August. And while this takes us back to similar prices seen in early 2022, property prices still remain high and are in fact up 1% since December 2021, which is also when we first saw the Bank of England starting to push up interest rates. Average house prices are still more than £39,000 above pre-pandemic levels, when we saw extraordinary growth with prices going up. 

Where are house prices falling the furthest?

While all UK nations and the nine English regions registered a decline in house prices on an annual basis, the South of England saw the most downward pressure on property prices, falling by -5.7% over the last year. The average house price there is now £376,450.

Northern Ireland seems to be the most resilient, with house prices falling just -0.2% compared to this time last year; the average house price is £184,108, representing a fall of less than £400. 

Scotland also saw a modest annual decline of -0.8%, taking the average house price to £201,594. 

And in Wales, property prices fell by -3.6% over the last year, taking the average house price to £214,585.

What is happening to house prices in London?

London house prices have seen the biggest fall of any region, where house prices have slumped by -4.8% over the last year. In cash terms, house prices have fallen by -£25,524.

Yet London continues to be the most expensive place in the UK to purchase a home where the average property costs £525,678.

Will house prices go down further? 

Higher interest rates leading to higher browning costs will continue to impact the market, but experts say it is starting to become a buyers market.

Kim Kinnaird, director, Halifax Mortgages, comments: “Activity levels continue to look subdued compared to recent years, with industry data showing lower levels of new instructions to sell homes and agreed sales. Borrowing costs are the primary factor, given the impact of higher interest rates on mortgage affordability. Against this backdrop, homeowners inevitably become more realistic about their target selling price, reflecting what has increasingly become a buyer’s market.

“However, with Base Rate now likely to be at or around its peak, we are seeing fixed rate mortgage deals ease back from recent highs. Wage growth also remains strong, which has helped with affordability, with the house price to income ratio now at its lowest level since June 2020 (6.2 in September vs 6.3 in August).”

But, with some experts predicting the Base Rate will remain higher for longer as the Bank of England continues to tackle high inflation, mortgage rates are likely to remain high dampening buyer demand and putting pressure on property prices in the UK.

Packaged bank accounts are current accounts that charge a monthly fee in exchange for perks such as insurance benefits, car breakdown cover, cashback, higher savings rates, and monthly freebies.

Similar to a current account, you can receive or send money, make payments and pay your bills. The difference here is that you’ll be charged between £10 and £45 a month, depending on the type of account you choose, so it’s worth shopping around for the deal that best matches your needs.

The best packaged bank accounts

We’ve rounded up some of the top packaged bank accounts on the market right now.

We take a further look at the accounts below.

What to consider before opening a packaged bank account

Before opening a packaged bank account, make sure you consider all the elements to ensure the perks outweigh the costs.

• Take a close look at any insurance policies being offered. If travel insurance is included, make sure that you’re eligible, if your travel insurance covers any activities you intend on doing, and that the policy covers countries you plan on visiting.
• If you have any pre-existing medical conditions, make sure you tell the bank when you open your account. This could hamper your chances of being accepted for the account, but it’s a better outcome than not disclosing a condition, only for something to happen down the line and find out you are not covered. We look at how to get travel insurance for over 70s in a separate guide.

Should I get a packaged bank account?

A packaged bank account might be a good option for you if:

You will use the perks: if an account comes with travel insurance, do you go abroad enough to make it worthwhile?

You don’t already have the benefits: Make sure you don’t already have the insurance coverage elsewhere. For example, have you got breakdown cover included in your car finance package or car insurance?

You will actually save money: if you were to pay for the service separately, it could work out cheaper than the account fees. Double-check before you open an account.

The account suits your needs: Don’t forget to check that the bank account is suitable too. Does it have the overdraft you need? If you need a branch, is there one local to you?

Are packaged bank accounts good value?

Working out if a packaged bank account offers value for money is straightforward: take the monthly charge and multiply it by 12 to get the annual cost. Then shop around to see what the benefits would cost you separately.

For instance, a Santander Edge Explorer account may be worth getting with the bank switching bonus, but it may not end up being worth the cost later. Make sure you repeat those processes each year rather than sticking with a packaged account for years that may no longer offer you good value.

Average house prices increased by 0.8% in March according to Halifax’s latest House Price Index.

While house prices rose in all UK nations and regions last month, the annual rate of growth continued to slow in most areas, down to 1.6% from 2.1% for the three previous months.

According to the lender, the typical UK property now costs £287,880, compared to £285,660 in February.

But for those looking to either sell or buy a house, the broad picture remains unclear.

Kim Kinnaird, director at Halifax Mortgages, notes while the market is still recovering from the mini-budget, the latest figures suggest some stability has returned to the housing market in the first few months of 2023.

“This has been characterised by a partial recovery in activity and transactions, especially when compared to the significant drops seen at the end of last year, with the latest Bank of England data showing mortgage approvals rising for the first time in six months,” she said.

“While rates remain much higher than the average of the last decade, across the industry a typical five-year fixed rate deal (75% LTV) is down by more than 100 basis points over the last few months,” Kinnaird added.

An expected fall in inflation over the coming months could further aid the recovery, but mortgage costs are unlikely to get “significantly cheaper in the short term” while the housing market will the new norms of higher borrowing costs and lower demand.

“Therefore, we still expect to see a continued slowdown through this year,” she said.

How have house prices changed per region?

The average house price edged up in all the UK nations and regions during March according to Halifax’s data, although growth slowed in most areas (with the exceptions of Greater London and the North East).

Northern Ireland continues to report the strongest annual growth in house prices of 4.9% (average house price of £186,459), followed by the West Midlands (3.8%, average property price of £248,308).

In Wales, the rate of annual property price inflation has slowed to 1.0% (average house price of £213,959).

Similarly in Scotland, the annual rate of growth fell to 2.3% (average property price of £199,853).

Average house prices in London are up very slightly on this time last year (0.1%) with the typical property now costing £537,250.

What will happen to house prices this year?

A separate analysis by Rightmove showed house prices rose 0.8% in March, largely on the back of a jump in the cost of large homes.

Meanwhile, Nationwide found house prices fell by 3.1% on a year-on-year basis in March, the largest annual decline since July 2009, triggering fears that the housing market will face a significant downturn for the remainder of the year.

These conflicting assessments are symptomatic of a “hiccupping market that is adjusting to a come down” from the rapid pace of house price growth over the past few years, said Myron Jobson, senior personal finance analyst at interactive investor.

"The reality is there is a collection of micro-markets at play. There are still regions where gazumping and bidding wars are rife, and the opposite is true in other parts of the nation. Estate agents have reported that a lack of supply in larger properties have kept prices inflated, as the race for space theme continues to play out,” he said.

A slump in mortgage rates, alongside a strong labour market, have helped to keep prices elevated, Jobson explained.

“But there is mounting evidence that the housing market is seemingly in a pendulum moment — swinging back in a buyer’s market direction,” he added.

Sarah Coles, head of personal finance at Hargreaves Lansdown also acknowledged the mixed picture being presented by housing data this year.

“As Zoopla highlighted earlier this week, demand is still down 43% in a year and sales have fallen 16%. Sellers are still having to cut prices by an average of 4% - or £14,000 - in order to sell, and the annual growth of asking prices continues to fall,” she said.

For many, affordability is being pushed “to the limits”, meaning we are likely to see weakness “persist” in the market. “We’re unlikely to have seen the last of the price falls,” she added.

And with the start of a new tax year, the drain on people’s buying power is “far from over,” said Alice Haine, personal finance analyst at Bestinvest.

“While the worst of the cost-of-living crisis appears to be behind us, the outlook for house prices is uncertain as households still have a number of personal finance challenges to contend with that may affect their buying power,” she said.

If your local bank or building society branch has closed recently - or is set to close soon - you’re not alone.

While you can switch bank accounts to find one that has a branch near to you, it is certainly getting harder to tick that box.

Thousands of bank branches have closed in recent years. Lloyds and Halifax recently announced they would close another 40 branches this year, while Barclays said on Saturday it would shut another six branches. Last year, HSBC said it would close 114 branches from April 2023.

The banks say demand has fallen as more as more customers do their banking online and that customers can also use any of the Post Office’s 11,635 branches to carry out most banking tasks.

As branches close, you may see a new “banking hub” pop up in your local area, which allow people from different banks to deposit and withdraw money - we explain below where to find the six which have recently opened. 

We explain how banking hubs and banking pods work, where the new banking hubs will be, and what the alternatives are if your local branch has closed and you still want face-to-face banking.

What is a banking hub?

Banking hubs allow customers from different banks to deposit and withdraw money. They offer a counter service operated by the Post Office, where customers of all major banks and building societies can carry out regular cash transactions, Monday to Friday.

The hubs also provide dedicated rooms where customers can see community bankers from their own banks to discuss more complicated banking issues. The community bankers work on rotation, with a different banking provider available on each day of the week.

In total, there are plans to create 62 hubs, but only six have opened so far. These are in:

• Brixham (Devon)
• Cambuslang (South Lanarkshire)
• Cottingham (East Riding of Yorkshire)
• Rochford (Essex)
• Troon (South Ayrshire)
• Acton, London

The ATM network operator, Link, has also recently announced locations for eight banking hubs:

• Downham Market (Norfolk) 
• Shirebrook (Derbyshire) 
• Otley (West Yorkshire) 
• Sidmouth (Devon) 
• Newton Aycliffe (County Durham) 
• Porthcawl (Bridgend) 
• Withernsea (East Yorkshire) 
• Wellington (Somerset) 

 It is unknown when these particular eight banking hubs will open. We’ll update this article when we know more. 

“Access to cash and face-to-face banking services continues to be important for millions of people across the UK. Not everyone can or is able to go digital yet, so we’re pleased to announce new cash services to support these communities,” said John Howells, chief executive of Link.

Link also announced the planned introduction of cash deposit machines in Keswick in Cumbria, Ripley in Derbyshire, Littlehampton in West Sussex, Whitstable in Kent, Dagenham in Greater London, and Colwyn Bay in Clywd.

There are plans for 38 new deposit services around the UK, where consumers and businesses can deposit cash without having to visit a bank branch.

On top of that there are plans for three fee-free ATMs to open up soon in areas where banks are closing down along with their ATMs. These will open in:

• East Horsley (Surrey)
• Newburn (Newcastle) 
• Ystradgynlais (Powys) 

What is a banking pod?

Barclays has announced it will launch a string of “banking pods” in response to changing customer needs.

The pods are purpose-built, semi-permanent structures in locations such as shopping centres and retail parks. They will provide a dedicated, private space, and can be moved depending on demand.

The pods differ to the shared banking hubs mentioned above, as the pods are only for Barclays customers.

At least 10 pods will be rolled out across the UK by summer 2023 following the success of the bank’s first one in St Austell.

The bank has not yet revealed the locations for the pods, but it says some of them will be areas without an existing Barclays presence.

In addition, six electric vehicle banking vans will be added to Barclays’ existing fleet of 10, enabling the bank to reach customers in remote locations.

The bank also said it is expanding its scheme where it works with local councils and communities to arrange a presence in places such as town halls and libraries.

“Our new banking pods and community pop-ups help us to tailor our in-person support for each location, including support with digital skills. In areas where we close a branch, we will maintain our presence in that community offering an alternative face-to-face solution,” said Jo Mayer, head of everyday banking at Barclays UK.

“They must be rolled out far more quickly”

Critics say banking hubs, pods, vans, pop-ups and any other types of temporary branches all need to be introduced quicker into communities struggling with a lack of banking services.

Jenny Ross, editor of Which? Money, said: “Cash remains hugely important for a significant minority who use it to pay for everyday essentials and keep track of their spending as the cost of living crisis goes on, yet banks such as Barclays continue to close hundreds of branches, making it harder for people to deposit and withdraw it.

“Proposals to plug gaps left by bank branch closures may well be part of the solution to protect access to cash, but must be rolled out in much larger numbers and far more quickly in order for people to feel their benefits.”

According to research by Which? last year, almost a quarter of free-to-use ATMs have vanished since 2018, while 4,685 bank branches have shut their doors - meaning almost half of the UK’s bank branches have closed since 2015.

My bank branch has closed. What are my options?

If your local branch has closed, check to see if there is a shared banking hub near you, or if your banking provider has any community pop-ups. As well as Barclays, TSB also runs pop-ups for its customers, such as in libraries, town halls and churches.

If you have a Post Office near you, you may be able to use its banking services, such as withdrawing cash, depositing cash and cheques and checking your account balance, Customers of Halifax, Lloyds, TSB, Allied Irish Bank, AIB, Bank of Ireland, Bank of Scotland and Virgin Money can access the full range of manual and automated banking services at a Post Office. Other customers may only be able to use certain services.

There’s a handy table on the Post Office website showing which personal services and which business services are available to which banking customers.

Another option if you want to withdraw money and there’s no bank branch, Post Office or ATM near you is to get cashback in a shop. Some supermarkets and convenience stores offer cashback at their tills with your debit card - and you don’t need to buy anything. Type your postcode into the Link website to see your options.

Finally, you could switch to another bank or building society that does have a local branch (although be aware there’s no guarantee this won’t close too).

Changing current account could mean you find one that is better suited to you, for example, offering cashback on bills, an interest-free overdraft and/or a decent savings rate. Look out for banks offering a switching bonus, as this means you’ll bag some free cash too.

Wondering what to do with old £20 notes and £50 notes? While paper notes ceased to be legal tender in 2022 and can no longer be used for everyday transactions, you can still exchange them for the same value in polymer notes.

It’s worth checking any unused bags, wallets and even your children’s money boxes for old notes that are no longer in circulation.

We look at what to do with old £20 and £50 paper notes and where to exchange them.

Are paper notes still legal tender in the UK?

No, paper notes stopped being legal tender in October 2022 when they were withdrawn from circulation and replaced with polymer notes.

A spokeswoman from the Bank of England told the BBC that “all genuine Bank of England banknotes that have been withdrawn from circulation retain their face value” and there is “no expiry on the period in which we will exchange banknotes”.

What is legal tender?

According to the Bank of England, the term ‘legal tender’ means that if you offer to fully pay off a debt to someone in a form considered to be legal tender – without any contract specifying another form of payment – you cannot be sued by anyone for failing to repay the debt.

In simple terms, it’s the officially recognised money by law that works as a means to settle a debt or meet a financial obligation. It tends to be the national currency of a country, per Investopedia.

What counts as legal tender in the UK?

If you live in England and Wales, then Royal Mint coins and Bank of England notes are considered legal tender.

In Scotland and Northern Ireland, Royal Mint coins are accepted as legal tender – but not the English banknotes. Both Celtic nations have their own banknotes, issued in the two countries by authorised banks.

As for coins, it’s slightly complicated. For instance, 1p and 2p coins count as legal tender for any amount up to 20p, while 5p and 10p coins are for any amount up to £5. £1 and £2 coins are acceptable for any amount.

You will also find that most of the common payment methods, like debit or credit cards, contactless payments, or paying by cheque, are not legal tender. We look at how to pay with a cheque in a separate guide.

Where can I exchange old banknotes?

There are various places you can take old £20 and £50 paper notes. Depending on where you live, some locations may be easier to access than others.

It’s also worth noting that you won’t receive the next series of banknotes featuring British wildlife just yet – replacing historical figures like Winston Churchill and Jane Austen for the first time in over half a century.

Instead, you’ll receive current polymer banknotes featuring King Charles III or the late Queen Elizabeth II, as they remain legal tender.

At the Bank of England

One option is to take the old paper notes to the central bank.

There is currently no time limit when it comes to exchanging your old UK banknotes at the Bank of England. However, you may need to present an original photo ID and proof of address when exchanging notes.

You can do this in two ways:

• In-person: You can swap your old notes at The Bank of England Counter, on Threadneedle Street, London. The counter is open between 9:30am and 3pm on weekdays (excluding bank holidays). Do be aware – even though the last entry is at 2:45pm, you may not be served if it has reached capacity after midday.
• By post: This is done at your own risk, and you may want to insure yourself against loss before sending banknotes in the post. The Bank of England website states that they are currently taking up to 90 working days to process postal banknote exchanges – so this method is only suitable if you don’t need the cash in a hurry. You’ll need to fill in a postal exchange form and send photocopies of your proof of ID and proof of address if you’re exchanging more than £700. It’s also worth tracking your post as the bank states that it cannot confirm receipt of postal exchanges.

At the Post Office

There are 53 Post Office branches across the UK that will let you swap your old banknotes for new polymer ones – even if you don’t have a bank account.

These are the notes you can exchange at a Post Office:

• £5 note – ceased to be legal tender on 5 May 2017
• £20 note – ceased to be legal tender on 30 September 2022
• £10 note – ceased to be legal tender on 1 March 2018
• £50 note – ceased to be legal tender on 30 September 2022

You can exchange up to the value of £300 every two years. You will need to show a form of photo ID so that the Post Office can keep track of how much you exchange and that you do not exceed the limit.

Valid forms of photo ID include your passport, driving license or a national identity card.

Find all the participating Post Office branches where you can exchange old notes.

At a bank or building society

Different banks have their own rules in place covering how they will handle paper banknotes. While some are happy to exchange them for new polymer notes, others are not so understanding.

Banks and building societies happy to exchange the old notes include Halifax, Lloyds Bank, Nationwide, Barclays, NatWest and Santander.

Banks that let you exchange paper notes will generally allow you to deposit the money into your account with them.

In some cases, you can still exchange the paper notes even if you don’t have an account with that particular bank, for example, with the Bank of Scotland and Virgin Money.

Can I exchange old coins for new ones?

Old £1 coins were demonetised in 2017, but you are still able to exchange them for new ones. We look at what to do with old £1 coins in a separate guide.

You can do this at your local high street bank, though it is entirely up to the bank whether they choose to accept the old tender. Retail banks which say they accept old coins include: Barclays, Lloyds, HSBC, Nationwide, Santander, and Virgin Money.

You cannot exchange old coins at the Bank of England. You can exchange your old coins at the Post Office, so long as they are in good condition.

Can I sell old notes and coins online?

You may find that some of your old notes and coins sell for more than their face value if they are part of special limited runs.

The Royal Mint issues gold coins, primarily for investment purposes, which you can also buy.

If you have a collectable coin, then you might decide to list it online on e-commerce platforms like eBay or Facebook Marketplace, or by selling it to a dedicated reseller. You could find that your old coins could be worth far more than you expect – here’s how to spot valuable coins.

However, just because coins are listed as rare on online marketplaces doesn’t mean they are worth that much money. The price of rare coins is determined entirely by the market, and a sale is contingent on finding a willing buyer.

It is entirely legal for you to sell your old coins online or to a reseller, but make sure you do your due diligence to ensure you are not scammed. It is a good rule of thumb to use reputable platforms and insure your items.

It's probably not much of a surprise that property-obsessed Britain has at least five main indices measuring house prices.

Nationwide, Halifax, the Office for National Statistics (ONS), Zoopla and Rightmove all produce monthly data reports that record the ups and downs of property prices.

But their conclusions on the state of the housing market are all slightly different, which can make things a little confusing.

So, how do the property indices differ from each other? We take a look at what each one measures and which house price index is the best.

Nationwide house price index 

The Nationwide house price index is one of the most popular indices used in the UK, with data stretching back to 1952.

The data used is based on the lender’s valuation at mortgage-approval stage. This may differ from the actual sale price, but the idea is that it is near enough to the end of the home-selling process to offer a more realistic snapshot than an initial asking price.

The index is mix-adjusted, which means it tracks a representative home by giving a relative weight to each property based on characteristics like the number of bedrooms. This prevents price disparities from arising if different types of properties are sold each month.

Halifax house price index 

Halifax’s house price index has data going back to 1983 and, like the Nationwide index, is based on the bank’s valuation at the mortgage-approval stage.

A standardised house price is calculated using this data, and property price movements on a like-for-like basis are analysed over time.

Rightmove house price index

Rightmove’s house price index differs from Nationwide and Halifax in that it is based on asking prices.

The asking price is usually determined at the very first stage of the home-buying process. The index also excludes house prices across inner London.

One obvious advantage of using asking prices is that it picks up price trends early on.

However, one of the main issues with the Rightmove index is that it mirrors market sentiment rather than solid data, according to London estate agent Petty Son & Prestwich. There is also no guarantee that a house that's advertised will sell and, even if it does, the asking price can differ drastically to the eventual selling price.

Despite this, the house price report is useful for data on discounts and how quickly properties are going under offer, which gives a good indication as to the health of the property market.

Zoopla house price index 

The Zoopla house price index uses sold prices, mortgage valuations, and data for agreed sales to calculate house prices for any given month. In other words, it tracks achieved prices, which is a key difference from an asking price index. Tracking homes that are “sold subject to contract” is a better indicator of current house prices, as the asking price often does not reflect the sale price.

The index also provides data on the number of days it takes to sell a house, giving prospective sellers a rough idea of how long it will take for their property to sell. This measures the time from the initial listing to going under offer.

Unfortunately, Zoopla’s index, like all other indices on this list, relies on a limited pool of data with some degree of time lag.

ONS/Land Registry house price index

Each month, the Office for National Statistics calculates official house price figures using sale data from HM Land Registry, Land and Property Services Northern Ireland, and Registers of Scotland.

The ONS index uses a statistical method called hedonic regression that adjusts the data to account for characteristics like the number of bedrooms.

Unlike the Halifax and Nationwide indices, which are based on mortgage approvals, the ONS data also includes cash purchases. This gives a broader view of the market and therefore, arguably, makes the index the most authoritative of the big five.

One downside is that the index has a time lag of around two months, as it takes some time to process conveyancers’ submissions to the Land Registry after a sale is completed.

This means the index is the least contemporaneous out of the five major indices.

UK Residential Market Survey by RICS

The UK Residential Market Survey by the Royal Institution of Chartered Surveyors (RICS) is very different to all other indicators in this list. It is a well-respected monthly sentiment survey of chartered surveyors operating in the residential sales and lettings markets.

Surveyors are asked to answer 18 questions on whether various metrics, such as sales, enquiries, listings, and house prices have risen, remained the same or decreased.

While it doesn't provide an average house price for a specific month, it serves as an indicator of current and future conditions in the UK housing market.

A positive net balance indicates that more surveyors are observing price increases, signalling a strong housing market. Conversely, a negative net balance suggests that more surveyors are witnessing price decreases, indicating a more fragile housing market.

For instance, if 15% of surveyors reported an increase in buyer inquiries and 20% reported a decrease, the net balance would be -5%.

If you’re planning a holiday abroad or often go on business trips, using the best cards for travel could help you make your funds go further.

There are many ways to save on holiday, whether it’s booking flights or buying travel money in advance.

But thinking about how you’ll pay for things on your trip is also important, as the wrong card could see you stung with high exchange fees.

You can avoid these charges by using a competitive travel card that comes with zero fees on foreign transactions. We have compiled a list of the best cards for travel abroad, and the host of perks they offer.

Best credit cards for travel abroad

If you are using a credit card, make sure you are in a position to pay off your bill in full at the end of each month. Otherwise, any interest charges will cancel out any benefits.

Lloyds Ultra Credit Card

This card from Lloyds comes with a low APR rate and there is no cap on how much cashback you can earn.

• 1% cashback on all card purchases in the first year, 0.25% after
• No foreign exchange fees or ATM withdrawal fees
• Representative APR and purchase rate of 12.9% (variable)

Barclaycard Rewards Card

• No fees on purchases abroad if paid in full
• 0.25% cashback on everyday spending
• No interest on cash withdrawals if paid in full
• Representative APR and purchase rate of 28.9% (variable)

NatWest Travel Reward Credit Card

• 1% cashback on eligible travel spending
• Or up to 15% cashback at select partner retailers
• Or 0.1% back on all other spending
• No foreign transaction fees on purchases abroad
• 3% fee on ATM withdrawals (minimum £3)
• Representative APR and purchase rate of 27.9% (variable)

Virgin Money Travel Credit Card

• 1% cashback on spending for the first 90 days, 0.25% cashback after that (up to £15 cashback per month)
• No foreign exchange fees overseas
• Representative APR 27.9% (variable)
• Up to 15% additional cashback with select retailers
• ATM withdrawal fees of 5% applies plus interest charge until repaid in full

Santander Edge Credit Card

• 1% cashback (max £10 per month) on all purchases
• No foreign exchange fees on purchases overseas if spent in local currency
• £4 monthly fee
• Overseas ATM withdrawals have a 3% fee (minimum £3)
• Representative APR 37.8% and purchase rate 29.9% (variable) until fully repaid

If you are applying for a credit card, always go through an eligibility checker, like the Card Match tool from our sister site Go.Compare.

We look at the best American Express credit cards and the best credit cards for airport lounge access in separate guides.

Best debit cards for travel abroad

We look at some banks that do not charge fees when using your debit card abroad. However, there may still be ATM withdrawal fees, often set by the ATM provider.

Chase Debit Card

• 1% cashback on eligible spending for the first 12 months (max £15 per month)
• Note: no cashback on overseas spending
• Fee-free spending and ATM withdrawals home and abroad

Chase also gives you access to its 2.25% (variable) easy access saver. However, the interest rate is quite low, so it’s worth checking out our best easy-access savings accounts guide for the top-paying accounts.

First Direct Debit Card

• Fee-free spending abroad
• Fee-free ATM withdrawals abroad, up to £500 per day
• £250 interest-free overdraft

You could get a £175 bank switching bonus for moving your current account to First Direct, and access a 7% regular savings account.

Starling Bank Travel Money Card

• No fees on spending abroad
• No fees on cash withdrawals abroad
• Manage in-app and online
• Maximum £300 ATM limit and six withdrawals per day while abroad

Monzo Debit Card

• Fee-free spending at home or abroad
• 0% interest on purchases over £100 or more paid over three months
• Otherwise 29% APR representative (variable) for up to 24 monthly payments

Make cash withdrawals of up to £200 outside of the EEA every 30 days for free. Anything over that incurs a 3% charge. You can also earn 2.75% AER (variable) with an Instant Access Savings Pot.

UK house prices continue to show signs of slowing down as December prices fell by 1.5% compared to November. This means the typical UK property now costs £281,272.

This is the fourth month straight where house prices have fallen, though December’s fall was lower compared to what we saw in November, when the Halifax House Price Index recorded a 2.4% decline in UK property prices.

Halifax said the uncertainties and concerns around the cost of living and the impact it will have on household bills, plus rising interest rates have contributed to the slowdown in UK house prices.

Kim Kinnaird, director, Halifax Mortgages, said: “The housing market was a mixed picture in 2022. We saw rapid house price growth during the first six months, followed by a plateau in the summer before prices began to fall from September, as the impact of cost of living pressures, coupled with a rising rates environment, began to take effect on household finances and demand.

“These trends need to be viewed in the context of historic prices. The cost of the average home remains high – greater than it was at the start of 2022 and over 11% more than house prices at the beginning of 2021. The first half of last year was a very strong period for sellers, between January 2022 and August 2022, the average cost of a home rose by over £17,000 to £293,992 (growth of +6%), setting a new record high.”

It is also worth noting, house prices are up by 974% since 1983, 40 years ago when the Halifax House Price Index started.

Will house prices go down in 2023?

Halifax expects the housing market will continue to be at the mercy of the wider economic environment, and both buyers and sellers will remain cautious. Halifax expects there will be a reduction in both supply and demand in 2023.

House prices are also expected to fall by around 8% this year, according to Halifax. You can also read more analysis about house prices in our article on where will house prices go in 2023.

“It’s important to recognise that a drop of 8% would mean the cost of the average property returning to April 2021 prices, which still remains significantly above pre-pandemic levels,” Kinnaird said.

Where did house prices slow down the most?

On an annual basis, the North East saw the greatest slowdown in growth, with annual house prices rising by 6.5%, compared to 10.5% the previous month. Average house prices in the region are now £169,980.

Eastern England, West Midlands and Wales saw the smallest falls in growth rate. House prices in the region are now an average £337,215m with growth rate 5.5% compared to 7.2% in November. In the West Midlands, average properties now cost £250,965, with a growth rate of 7.3% compared to 9.1% in November.

The average home in Wales is now £217,547, with annual growth now 6.1% - down from 7.7% the previous month.

In Scotland, the average home now costs £200,166, with the second greatest slowdown in the annual growth in the UK, now 3.5% compared to 6.4% in November..

Properties in Northern Ireland are up 7.1% year-on-year, lower than the 9.1% last month, with average homes now costing £183,825.

The cost of an average home in London in December was £541,239, a growth of 2.9% annually, compared to 5% last month.

What is the Halifax House Price Index?

The Halifax House Price Index measures UK house house prices based on mortgage transaction data.

Using the data, it calculates a standardised house price and looks at price movement over time.

It is, of course, not the only index, but it is the longest running one which started 40 years ago in 1983. You can read more about which house price index is the best in our article.

When the Halifax House Price Index was established in January 1983, the average UK house price was £26,188 and Bank base rate was 11%. Since then, average house prices have grown +974% to £281,272 and Bank base rate is 3.5%.

Looking over the past four decades, prices peaked in August 2022 at £293,992.

London continues to be the most expensive place to buy a home. Properties in the capital were an average £36,056 in the first three months of 1983 when the index started, compared to £541,239 today. Yorkshire and the Humber was the cheapest place to buy a property when the Index began, with average properties costing £20,332, compared to £205,466 now.

Earlier in the week I stumbled across an old TV ad from the 1980s for the Leeds Permanent Building Society. It featured George Cole (he of Arthur Daley fame) bumbling from wide-boy investment opportunity to wide-boy investment opportunity.

The moral of the ad was that, instead of getting involved in harebrained businesses, you’re better off putting your money in the Leeds Liquid Gold account, because it pays 7.65% interest. 7.65%! This was a normal rate of interest back then.

We’ve been forced into becoming a nation – nay, a world – of speculators

The Leeds Permanent Building Society was not so permanent as it turned out. It merged with the Halifax Building Society, and lost its name. The Halifax then merged with Bank of Scotland to form HBOS in 2001. Then, following the global financial crisis, that became part of the Lloyds Banking Group.

Today the equivalent Halifax Everyday Saver account pays 0.01%. We don’t have the option of 7.65% interest at the Leeds or anywhere else, and so we get involved in harebrained businesses, otherwise known as the stockmarket, instead.

This dynamic explains so much. When you do a job, you expend energy. For expending that energy, you are paid. The money you are paid is, in a way, a store of that energy, which you can then draw on at some later stage to buy some kind of good or service. For the system to work, it is vital that monetary energy is retained.

When interest rates roughly reflected inflation, as in the 1980s, most of your energy was retained. There was an honesty to the system – that has long since disappeared.

As globalisation took hold in the 1990s, the incredible manufacturing powerhouse that was China was able to export its cheap goods aplenty and we bought them aplenty. China’s manufacturing costs were a lot cheaper than ours, and so China effectively exported lower prices. Meanwhile, in the West, in our measures of inflation we focus on consumer prices, which, thanks to China, kept getting lower and lower. “Look, inflation is low”, said central bankers, as they ignored all the debt being created to buy houses, commercial property and financial assets. And so interest rates gradually got lower.

Some could see that their money was losing its energy. House prices were going up at ridiculous rates. It was easy to borrow money. And so buy-to-let became a thing. You’re better off keeping your money in “bricks’n’mortar”. Don’t sell your flat as you move up the ladder to buy a house, just keep the flat and borrow more.

Instead of putting your money into the Leeds, you might have bought government bonds or gilts. These also paid you an interest rate that compensated you for the loss in purchasing power of your currency, and helped retain that energy you had expended earning the money in the first place. But since 2008, that option no longer exists either. There is no way you’ll hang on to your expended energy. Pension funds only buy bonds because they have to. I’m not joking – regulations oblige them.

We had the transformative invention of tracker funds and the exchange-traded fund (ETF). No longer did you have to take individual company risk, or individual fund manager risk; you could just buy the stockmarket.

So where do you put your money now?

And so, this century, the stockmarket, especially to our American brothers and sisters, effectively became a savings vehicle that returned you somewhere between 5% and 20% a year. (Most years).

In fact, it became such an effective savings vehicle that many began using leverage (another word for debt) to buy more, and so the money supply increases. It was a bit like buy-to-let. And the stockmarket, especially in the US, continually rises to levels which for years have had fund managers scratching their heads and wondering why they bother. The S&P 500 has become a savings vehicle.

I remember interviewing James Turk, founder of Goldmoney, back in 2006. We talked at great length about the loss of purchasing power of fiat money. James went so far as to write a book: The Coming Collapse of the Dollar and How to Profit from It. “Buy gold,” James would say. At the time it was trading around $500 an ounce.

“If we buy gold,” I asked him, “how do we know when to sell it?” “You’re not going to sell it,” James said. “You’re going to spend it.” In other words we were going to go back to using gold as money.

Like Turk, Satoshi Nakamoto took a look at what was going on with the system, and he didn’t like what he saw either. So he invented a new system of money called bitcoin. It really caught on. Here was a new system of money to save in and, boy, did it retain its energy. “HODL!” (hold your bitcoin indefinitely) has become its war cry.

Today bitcoin is gold 2.0, they say. Digital gold. It is immune to the pernicious forces of inflation. Its inflation rate is set in code. Even large public companies are using it as their savings vehicle. Microstrategies (Nasdaq: MSTR) has just raised another billion dollars to buy bitcoin, on top of the billion and a half it has already spent. Jack Dorsey’s Square announced yesterday that it has purchased another $190m-worth.

So we buy bitcoin, we HODL. How do we know when to sell? You’re not going to sell your bitcoin, they say. You’re going to spend it. I’ve heard that one before.

No, really you are. Bitcoin’s most vocal proponents constantly lobby companies and individuals to start accepting bitcoin. You’ll be able to buy a Tesla with it. Some house vendors now accept bitcoin. You can buy art – in the form of NFTs (more on those in the next issue of MoneyWeek, out on Friday – subscribe here if you don’t already have a subscription).

What about the capital gains tax implications of spending bitcoin (rather than trading it)? Do you have to pay CGT when you spend it? I’m looking forward to watching that argument. Life would be so much easier if governments protected the purchasing power of the currency they issued. But life isn’t easy, and governments print. What’s your chosen savings vehicle?

Daylight Robbery – How Tax Shaped The Past And Will Change The Future is now out in paperback at Amazon and all good bookstores with the audiobook, read by Dominic, on Audible and elsewhere.

Tesco Bank has left the mortgage market by selling its £3.7bn loan book, says The Daily Telegraph. This is in line with a strategy to "slim down the number of services and products it offers to reduce costs". The 23,000 customers will be moved to Halifax, a subsidiary of Lloyds.

While supermarket banking services "were once seen as a credible threat to the dominance of major high-street banks", tighter regulation in the mortgage market and a series of digital-banking apps geared towards winning over younger customers have hampered supermarkets' financial divisions.

The deal is the latest sign of the "convulsions gripping the UK's mortgage market", says Ben Martin in The Times. These have been caused by post-crisis regulations forcing banks to separate legally their investment banking arms from their high-street businesses.

As a result, the capital that lenders with a global presence would previously have been "free to put to work across their businesses" is now "locked in their domestic divisions". This in turn has encouraged large banks such as HSBC and Barclays to put the money into mortgages, creating "intense competition" that has hit the margins of firms such as Tesco Bank.

Margins in mortgage lending are so low that although the loans were bought at a premium of 2.5%, Lloyds claims that they "would still produce better returns than issuing new loans in current market conditions", says Nicholas Megaw in the Financial Times. It is hardly surprising, then, that Lloyds was not the only bank to bid for them.

There's no point sticking with a bank that offers a bad deal. Make sure you move when rates are cut.

Lloyds is cutting the interest rate on its Club Lloyds and Bank of Scotland Vantage accounts from 2% to 1.5% in July, while also hiking the monthly fees on all packaged bank accounts offered by Halifax, Lloyds and Bank of Scotland by £2 a month. For loyal Lloyds customers, this could be a good time to see if you can do better with another bank.

If you tend to keep a reasonable amount of money in your current account, then make sure you are being rewarded with a decent interest rate. The best you can get is 5% on balances of up to £2,500 with Nationwide's FlexDirect account. You need to pay in at least £1,000 a month. Be aware that the rate drops to 1% after 12 months, so you'll need to shop around again then.

Alternatively, Tesco Bank pays 3% on up to £3,000 on its current account. To get that rate, you need to pay in at least £750 a month and have at least three direct debits going out of the account every month. Tesco allows two accounts per person, so a couple could secure a 3% interest rate on up to £12,000.

If you don't keep a lot of money in your current account, then you may be better off banking a switching bonus instead of going for the top interest rates. M&S Bank is offering a £125 gift card to new switchers to its current account. There is no minimum monthly deposit, but you must have at least two direct debits set up. The account pays no interest. However, if you deposit at least £1,000 a month, then you'll get an extra £5 a month added to your gift card for 12 months.

If you'd rather have the cash, Halifax is offering a £75 switching bonus if you move to its Halifax Reward account. On top of that bonus, you'll get a £3 a month reward if you pay in £750 a month, don't go into your overdraft and pay out at least two direct debits. Just note that you won't get the bonus if you've received a switching incentive from Halifax since January 2012.

Anyone looking for a new current account to pay their household bills from should take a look at Santander and NatWest. Both banks have current accounts that give cashbacks on bill payments. Santander's 123 Lite account gives between 1% and 3% cashback on direct debits to pay bills. The 3% rate is for phone, broadband, mobile and TV bills, with 2% paid on gas, electricity and Santander insurance, and 1% on water, council tax and Santander mortgage payments.

You need to pay at least £500 a month into the account and have at least two direct debits set up to get the cashback. There is also a £1 monthly fee. NatWest's Rewards Account has a £2 a month fee, but pays a flat 2% cashback on the same range of bills as Santander. However, you have to pay at least £1,500 a month into this account.

Finally, if you want a current account that comes with added benefits, then Nationwide's FlexPlus account is the best package by far. It offers worldwide family travel insurance up to the age of 74, family smartphone insurance, and UK and Europe breakdown cover. The account costs £13 a month, but the travel insurance alone could cost more than that if you got a separate policy.

The breakdown cover is for the account holder driving any car and the mobile insurance covers loss, theft, damage and breakdown of all phones owned by you, your partner or dependent children at the same address, provided the phone isn't worth more than £1,000. On top of all that, the account pays 3% a year on up to £2,500 for 12 months.

Pocket money TSB fiasco drags on

TSB customers were still struggling to access their accounts on Wednesday, despite assurances from the bank's chief executive that its internet and mobile-banking services were up and running, says Angela Monaghan in The Guardian. TSB had warned customers to expect disruption over the weekend while it switched from a platform rented from its former owner Lloyds to its own platform, but the problems continued well into this week.

If you've been affected by these over the past few days you can claim compensation for any losses incurred, including any charges for late payment, and knock-on costs such as credit-card interest, says The Daily Telegraph. There is also scope to claim for "non-financial harm", such as the stress caused. You can ask the bank to have your credit file corrected if not being able to access your account leads to problems with your credit score.

Car-insurance prices have fallen for the first time in three years, but most drivers are not being offered cheaper rates when their insurance comes up for renewal, says Annabelle Williams in The Times. Insurance premiums rose when the government changed the way compensation payments were calculated, meaning insurance firms faced bigger payouts but a review of this change should mean payouts will fall. Make sure you shop around when it's time to renew your policy never accept a renewal without checking it's competitive.

Online estate agents are cheaper than traditional firms, but they accounted for just 6% of sales last year, up from 5% in 2016. One reason for the slow take-up is that online agents tend to ask for payment up front, so sellers feel there is less incentive for the agents to chase a deal once they have handed over the money, says Ali Hussain in The Sunday Times.

Online agents charge a flat fee, unlike high- street agents who typically charge around 1.5% of the sale price. The huge cost savings "can be tempting and the lack of a presence on the high street is not necessarily a problem given that most people's property searches begin online" although some argue that a traditional agent can play a valuable role in ensuring a sale gets from offer to completion.