The housing market has kicked off the new year with a strong uptick following a remarkable surge in prices. According to property website Rightmove, the average home price has risen by nearly £9,900 to reach £368,031 since December. This 2.8% increase represents the largest January jump in Rightmove’s 25-year history and the most significant month-on-month rise since June 2015.
Rightmove attributed this market rebound to Chancellor Rachel Reeves’ Budget announcement at the end of November, which dispelled previous rumors and uncertainties that had been hindering activity.
Despite the positive trend, Rightmove cautioned potential sellers about the challenging market conditions. The number of homes listed for sale is at its highest level for this time of year since 2014, with a third of properties experiencing price reductions. Regional differences persist, with the East Midlands and Scotland witnessing price declines while most other regions saw increases.
Buyer interest surged in the two weeks post-Christmas, with a 57% increase in inquiries to agents and an 81% rise in newly listed properties compared to the previous fortnight. This heightened demand has been supported by declining mortgage rates due to significant cuts by major lenders at the end of 2025 and the start of 2026.
Colleen Babcock, a property expert at Rightmove, highlighted the importance of setting realistic asking prices amid the current market dynamics. She emphasized the need for sellers to heed their agents’ advice and avoid overpricing, given the ample supply of homes for sale and the prevalence of price reductions.
Myles Moloney, director at Chase Buchanan estate agents in London, noted the bustling market activity, particularly in homes that align with buyers’ preferences such as those with strong schooling options and spacious living areas. He highlighted the increased interest in family homes at the beginning of the year, driven by affordability improvements and a desire to secure properties promptly.
Overall, the housing market shows signs of resilience and activity, with well-presented and reasonably priced homes attracting significant attention from buyers.