Largest ever January price jump, as market sentiment rebounds after the Budget
- The average price of homes coming to the market for sale rises in January to £368,031, a 2.8% increase from December (+£9,893). This is the largest ever price increase seen in the month of January, and the largest of any month since June 2015:
- National average property prices are now 0.5% ahead of this time last year as prices rebound after the Budget
- However, the number of available homes for sale is the highest it’s been at this time of year since 2014, and with a third of existing homes for sale seeing a price reduction, new sellers should be wary of being too optimistic on price
- This record January price increase comes as home-movers return to the market, with the traditional Rightmove Boxing Day bounce combining with a recovery in market sentiment after the uncertainty of the Budget
- An early snapshot of activity shows that in the two weeks post-Christmas, buyer demand rose by 57% compared to the two weeks before Christmas, while the number of newly-listed homes for sale jumped by 81%
- Rightmove recorded its busiest Boxing Day ever for visits to the platform, as movers began their 2026 search
- Over the last week, buyer demand is lower than the stamp-duty-fuelled start to 2025, but in line with 2024. Buyers can plan a new year move with less financial uncertainty alongside improved affordability for many
- Rightmove’s daily mortgage tracker shows that the average two-year fixed mortgage rate is at its lowest since before September 2022’s mini-Budget, as many major lenders cut rates to capitalise on new year activity
Largest price increase for the month of January on record of +2.8%
Average asking prices are now just ahead of where they were at this time last year at +0.5%
Lowest average two-year mortgage rate since mini-Budget in 2022 of 4.29%
National average asking price
Jan 2026
£368,031
Dec 2025
£358,138
MoM change
+2.8%
National average asking price by market sector (excluding inner London)
First time buyers
£225,544
MoM change
+1.6%
Second-steppers
£341,131
MoM change
+2.0%
Top of the ladder
£658,658
MoM change
+2.6%
“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, 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 twelve-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.
“It’s early days but there are encouraging signs that more home-movers are now planning a 2026 move as we head towards the important Spring buying and selling season. A record number of visits to Rightmove on Boxing Day and a big bounce in activity following a quieter festive period have set the tone for a positive start to the year. Many buyers have seen their affordability improve with average wage rises outstripping average property prices. Mortgage rate cuts at the end of 2025 and beginning of 2026 will also support those who are looking to move and come as some very good news at the start of the year, with a typical home-mover seeing their affordability improved by around £100 a month.”
Colleen Babcock, property expert at Rightmove