UART1 RX problem

Hi all,
 
for the past few days I've been trying to get input data from a terminal to my SW application running on Zedboard. I am using UART1, and I tried all of the example projects Xilinx provided in SDK. However, all of them pass apart from the low echo example which actually tries reading data the user sent - it gets stuck in the while (!XUartPs_IsReceiveData(UART_BASEADDR)), which should check if there is any data in the RX FIFO.
 
When I send data over the terminal, the data obviously gets to the Zedboard since LD10 blinks, but the example project never gets out of the while loop mentioned above. Did anyone else by any chance have a problem like mine, and how did you solve it? I'd be grateful for any help provided.
 
I'm using Vivado and SDK 2016.3.