After a quiet end to 2025, January data shows a strong start to the year, with increases in asking price, renewed interest from buyers, and more confidence from sellers, resulting in more properties coming to market.
Record growth in asking prices
According to the latest Rightmove figures, the average asking price on newly listed homes rose to around £368,031 in January 2026, a 2.8% increase from December 2025. This is the largest month-on-month rise for any January on record and the largest monthly rise seen since mid-2015.
The rise in asking prices suggests that sellers are entering 2026 with greater confidence, encouraged by improved market stability and better borrowing conditions compared with a year ago. This growth moves us closer to where we were in August 2025, before the lead-up to the November budget and the discourse surrounding it, which caused a great deal of uncertainty in the market.
Buyer demand and listings
As well as the increase in average asking prices, we have seen strong early-year activity in buyer demand.
In the two weeks after Christmas, buyer demand increased by 57% compared to the two weeks prior. During this same period, the number of newly listed homes on Rightmove increased by 81%, giving buyers much more choice.
Rightmove reported that the number of homes listed for sale in the weeks after Christmas was among the highest for this time of year since 2014, providing buyers with more options but also increasing competition for those properties. Reports show that a third of the properties that were already on the market had their asking prices reduced.
What This Means for Buyers and Sellers
For sellers, the combination of higher asking prices and improved buyer interest suggests growing confidence in the early 2026 market. However, with supply also increasing, realistic pricing remains essential. Properties that are over-valued may see a longer time on the market or require future reductions.
For buyers, rising prices do raise affordability considerations, particularly for first-time buyers. However, with more properties coming to the market and improved activity levels, well-prepared buyers will have good opportunities available to them, especially where properties are priced in line with local market trends.
Regional Differences Remain Important
Even with a national uplift in price and activity, the January 2026 data highlights that regional markets continue to show differences. Some areas experienced stronger gains in average asking prices, while others, such as the South East and East of England, actually saw a reduction in asking prices compared to the same period in 2025.
The North East saw the largest regional price increase, with asking prices rising by 7%.
These local differences highlight the importance of area-specific knowledge from agents, valuers, and conveyancers when pricing, marketing, and progressing transactions.
Mortgage rates
Mortgage rates experienced a steady reduction in 2025, and although they did not drop as low as predicted at the beginning of the year, the lower rates did encourage more stable activity in the property market.
2026 is starting with two-year fixed mortgage rates at the lowest level since 2022. However, at present, no further rate cuts are expected until later in the year. Two-year fixed mortgage rates are currently averaging 4.29%, compared to 5.03% at the same time in 2025.
Spring activity
January 2026 has delivered strong early signs that the UK property market is starting the year with renewed activity and upward price movement for newly listed homes. Rightmove’s data highlights a busy January, with price increases, stronger buyer engagement, and elevated listings, all of which are contributing positively to market momentum.
For buyers, sellers, estate agents, and conveyancers, the focus now shifts to converting this early momentum into agreed sales and smooth completions through the first quarter of the year.
