The UK property market has kicked off 2026 with a significant surge, as the average asking price for a home jumped by nearly £10,000 in January. This marks the most substantial increase for the month in a quarter of a century, according to fresh data from the property portal Rightmove.
Market Momentum Builds After Challenging Period
The figures reveal that the average asking price climbed by 2.8% at the start of the year. This powerful rebound pushes the typical price tag on a British home to £368,031, a level not seen since August 2025. This jump indicates a notable recovery in confidence among sellers, who are entering the new year with renewed optimism.
A Balancing Act: Rising Prices Meet Increased Choice
Despite the enthusiastic start, Rightmove has issued a note of caution to those looking to sell. The property expert advises vendors to remain realistic with their pricing expectations. This warning comes as the number of homes available on the market has reached a 12-year high for this time of year. This increased supply offers prospective buyers a much wider selection and more negotiating power than they have had in recent times.
In a parallel development that may ease affordability concerns, mortgage rates have undergone recent cuts. Lenders are widely expected to keep these rates steady in the coming months, which improves purchasing power for many aspiring homeowners.
Rental Market Sees a Historic Shift
Separate research from the estate agency Hamptons provides a contrasting picture for the rental sector. Their report found that newly agreed rents across Britain actually fell by 0.7% over the course of 2025. This decline represents the first annual drop in rental prices since 2011. The data shows the average tenant is now paying £1,371 per month, a slight relief in the often-buoyant rental market.
The simultaneous rise in asking prices for sales and the dip in new rental agreements paints a complex picture of the UK housing landscape as 2026 gets underway. While sellers are seizing the moment, the high volume of properties for sale and changing rental dynamics suggest a market that is rebalancing after a period of volatility.
