The UK property market has kicked off 2026 with a significant surge, recording the largest monthly increase in average asking prices for January in over a decade. According to data from the property portal Rightmove, the price tag on a typical home jumped by a substantial 2.8% at the start of the year.
A New Year Price Surge
This notable rise, equivalent to a cash increase of £9,893, pushed the average asking price to £368,031. Rightmove confirmed this is the most significant increase recorded for the month of January in its 25-year history of tracking the market. The rebound effectively brings prices back to levels last seen in August 2025, before market sentiment was dampened by uncertainty in the run-up to the autumn budget.
Colleen Babcock, a property expert at Rightmove, commented on the positive start. "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," she said. This confidence coincides with more potential buyers actively searching.
Caution Advised for Sellers
Despite the optimistic figures, Rightmove issued a clear warning to sellers not to get carried away. The platform noted that the number of available properties on the market is at its highest level for this time of year since 2014, meaning buyers have more choice than they have had in a long time.
Babcock emphasised the need for realism. "Sellers would do well to listen to the guidance of their agent when setting their asking price and avoid being over-optimistic," she advised. She pointed out that a third of properties already listed have undergone a price reduction, indicating that correctly priced homes are key to securing a sale in a competitive environment.
The surge in activity follows a record number of visits to Rightmove on Boxing Day and a post-festive period bounce. Babcock also highlighted that improved affordability, with average wage rises outstripping property price growth in recent times, is helping many buyers.
Mortgage Market and Rental Trends
In related news, the mortgage market is providing a boost. Many lenders have cut their rates in recent weeks, offering better deals for prospective homeowners. Matt Smith, a mortgage expert at Rightmove, suggested that rates are "likely to be steady for the next few months," adding that those waiting for cheaper deals "might currently be seeing some of the best deals that will be around for a while."
Meanwhile, the rental market tells a different story. A separate report from Hamptons found that newly agreed rents across Britain fell by an average of 0.7% in 2025. This marks the first full calendar year decline since the firm's records began in 2011. The average tenant moving into a new property in December 2025 paid £1,371 per month, which is £10 less than the previous year.
Aneisha Beveridge, head of research at Hamptons, noted that while falling rents looked positive on paper for tenants, the trend was driven more by strong first-time buyer numbers and economic factors than by improved tenant affordability. She observed that fewer people are entering the rental market, with many opting to stay at home longer.
Regional rental data for December 2025 from Hamptons shows a mixed picture:
- London: £2,294 (minus 2.7%)
- South East: £1,456 (minus 1.0%)
- North West: £1,034 (plus 2.5%)
- West Midlands: £1,085 (plus 2.1%)
- Scotland: £1,030 (plus 0.5%)
Estate agent Myles Moloney of Chase Buchanan in London summarised the sales market dynamic, stating: "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."
