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 increased by nearly £9,900 to reach £368,031 since December. This 2.8% rise represents the largest January increase in Rightmove’s 25-year history and the most significant month-on-month jump since June 2015.
Rightmove attributed this market rebound to Chancellor Rachel Reeves’ Budget announcement at the end of November, which dispelled prior rumors and uncertainty that had been dampening activity.
Despite the positive momentum, Rightmove cautioned potential sellers that market conditions remain challenging. The number of homes available for sale is at its highest level for this time of year since 2014, with a third of listed properties experiencing price reductions. Market volatility is also evident, with regions like the East Midlands and Scotland seeing price declines while most others witnessed increases.
Buyer demand surged post-Christmas, with a 57% increase in inquiries to agents about homes for sale and an 81% rise in newly listed properties compared to the preceding two weeks. This heightened demand has been supported by decreasing mortgage rates, with major lenders implementing notable rate cuts at the end of 2025 and the beginning of 2026.
Colleen Babcock, a property expert at Rightmove, highlighted the positive trend of sellers listing their homes at higher prices, signaling renewed confidence in the market. However, Babcock advised sellers to heed their agents’ guidance when setting asking prices to avoid overpricing, considering the abundant inventory and the prevalence of price reductions.
Myles Moloney, director at Chase Buchanan estate agents in London, noted the brisk market activity and emphasized the importance of well-presented homes that cater to modern family living preferences. He mentioned a surge in family home buyers early in the year, drawn by affordability improvements and properties meeting current lifestyle needs.
In summary, the housing market has seen a promising start to the year, with increased buyer interest and sellers cautiously navigating market dynamics to achieve successful transactions.
