Latest data from Rightmove reveals that UK residential asking prices have recorded their strongest ever January uplift, highlighting a sharp rebound in market sentiment at the start of 2026 following the uncertainty that surrounded last autumn’s Budget.
Rising asking prices, elevated stock levels and stabilising funding costs are al likely to support strong demand across acquisition, chain-break and refurbishment bridging cases.
But with pricing discipline returning and buyer choice increasing, accurate valuation and realistic exit strategies will remain critical as the market moves into the spring selling season.
The average price of homes newly listed for sale rose by 2.8% month-on-month in January to £368,031, an increase of £9,893.
LARGEST RISE IN 25 YEARS
It is the largest January rise in Rightmove’s 25-year index and the biggest monthly increase of any month since June 2015.
National average prices now sit 0.5% higher than a year ago, reversing the subdued conditions seen through much of 2025.
“The data points to renewed transaction momentum.”
For specialist lenders, the data points to renewed transaction momentum rather than a return to frothy pricing.
Supply remains elevated, with the number of homes for sale at its highest level for this time of year since 2014, and around a third of existing listings having already undergone price reductions.
This imbalance is likely to keep deal negotiations active, particularly where speed, certainty and flexibility remain decisive.
ACTIVITY RESURGENCE
The price rebound coincides with a clear resurgence in activity. In the two weeks following Christmas, buyer enquiries jumped by 57% compared with the fortnight before, while new listings rose by 81%.
Rightmove also recorded its busiest ever Boxing Day for platform traffic, reinforcing the traditional seasonal spike as movers reassessed plans for the year ahead.
“Activity levels are broadly in line with early 2024.”
While buyer demand has eased from the stamp-duty-driven surge seen at the start of 2025, activity levels are broadly in line with early 2024, suggesting a more sustainable footing as affordability pressures begin to ease.
Mortgage pricing has also improved materially. The average 2-year fixed rate has fallen to 4.29%, down from 5.03% a year ago and the lowest level since before the September 2022 mini-Budget.
For a purchaser at the national average asking price with a 20% deposit, this equates to a saving of more than £100 per month.
NEW SELLER CONFIDENCE
Colleen Babcock, property expert at Rightmove, said: “It’s an encouraging start to the year to see sellers confident enough to list their homes at higher prices after several months of muted price growth last year, coinciding with more potential buyers returning to market.
“Some buyers, particularly first-time buyers, won’t want to see prices rising too quickly. However, asking prices are only back to where they were in the summer of 2025 before the Budget rumours began surfacing, which unsettled the market and dented confidence.
“This new year seller confidence is a good sign.”
“This new year seller confidence is a good sign, but sellers would do well to listen to the guidance of their agent when setting their asking price and avoid being over-optimistic.
“There’s a 12-year high number of homes for sale for this time of year, so buyers have lots of choice, and a third of properties that were already on the market for sale have had a price reduction.
“This means that sellers need to be realistic and balance the price they want to achieve with the likelihood of being able to find a buyer in their local market at that price.”
BUSY MARKET
Myles Moloney, Director at Chase Buchanan Estate Agents in London, added: “The market has been very busy, and the types of homes we’re seeing become available for sale are perfectly positioned to take advantage of what buyers are looking for right now.
“Strong schooling is a huge driver in our area and growing families want a large open plan kitchen and living space.
“We have seen a big uplift at the start of this year.”
“We had a listing which fit these exact criteria and was one of the most viewed on Rightmove on Boxing Day. It was the kind of home that naturally stands out when activity spikes.
“We have also seen a big uplift at the start of this year in family home buyers who are moving for the second or third time. Many are keen to push on early in 2026 and secure their next step rather than wait for the spring market.
“Improving affordability through mortgage rate cuts are helping. Homes that are well presented, priced sensibly, and set up for modern family living are the ones cutting through and attracting the highest levels of attention.”
