The housing market has kicked off the year with a strong surge following a notable increase in prices. According to property website Rightmove, the average home price has risen by nearly £9,900 to £368,031 since December. This 2.8% increase represents the largest jump in January that Rightmove has reported in its 25-year history, as well as 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 affecting market activity negatively.
Despite the positive momentum, Rightmove cautioned potential home sellers about the challenging market conditions. The number of homes available for sale is currently the highest at this time of year since 2014, with one-third of listed properties experiencing price reductions. Market conditions vary widely across regions, with the East Midlands and Scotland being exceptions to the overall price increase trend.
Buyer demand surged significantly in the two weeks following Christmas Day, with a 57% increase in inquiries to agents 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 towards the end of 2025 and the beginning of 2026.
Colleen Babcock, a property expert at Rightmove, expressed optimism about sellers listing their properties at higher prices amid a resurgence in buyer interest. However, she advised sellers to heed their agent’s guidance when setting asking prices to avoid overpricing. With a high number of homes for sale and a considerable portion already reduced in price, sellers are urged to be realistic to attract buyers effectively.
Myles Moloney, director at Chase Buchanan estate agents in London, noted a busy market with a growing interest in family homes offering specific features like open-plan kitchens and strong schooling options. He highlighted the importance of well-presented, reasonably priced homes designed for modern family living, which are garnering significant attention from buyers seeking their next property early in the year.
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