The average asking price of homes coming to the market rose to £368,031 in January, up 2.8% from December, an increase of £9,893, the latest data from Rightmove shows. This marks the largest price rise ever recorded in January and the biggest monthly jump since June 2015.
National average asking prices are now 0.5% higher than a year ago as values rebound following the Budget. However, choice for buyers is at its highest for this time of year since 2014, and with around a third of existing homes for sale having already reduced their asking price, new sellers should be cautious about setting prices too optimistically.
This record January increase comes as home-movers return to the market, encouraged by the start of the traditional spring selling season and renewed confidence at the beginning of the year.
Record January asking-price growth signals strong start to year – London Wallet
Industry reaction:
James Nightingall of HomeFinder AI: “January is seeing an evident return in buyer and seller confidence. Just after Christmas house hunters started carrying out more online searches whilst sellers chose this period to put their property on the market. This uplift in activity has continued into the new year, resulting in more viewings and offers being made.”
Jeremy Leaf, north London estate agent: “Buyers and sellers breathed a collective sigh of relief when tax changes in the Budget turned out to be not as punitive as many expected.
“Although the Rightmove survey looks at asking, rather than selling, prices of newly-listed homes, activity is definitely ‘on the up’ buoyed by falling mortgage rates and inflation.
“However, sellers should be careful not to get too carried away. The amount of new and existing stock – especially flats – as well as underlying worries about employment prospects, are keeping a lid on what buyers are prepared to pay.”
A spokesperson for Chestertons: “Chestertons does not expect property prices to move more than low single digits across London or the UK in 2026 but believes that improved clarity from the Autumn Budget will release some of the pent-up demand from those who didn’t have the confidence to move in the second half of 2025. This should prompt increased transaction levels in the first few months of the year, which could in turn start exerting upward pressure on prices.”
Myles Moloney, director at Chase Buchanan: “The market has been very busy, and the types of homes we’re seeing become available for sale are perfectly positioned to take advantage of what buyers are looking for right now. Strong schooling is a huge driver in our area and growing families want a large open plan kitchen and living space. We had a listing which fit these exact criteria and was one of the most viewed on Rightmove on Boxing Day. It was the kind of home that naturally stands out when activity spikes.
“We have also seen a big uplift at the start of this year in family home buyers who are moving for the second or third time. Many are keen to push on early in 2026 and secure their next step rather than wait for the spring market. Improving affordability through mortgage rate cuts are helping. 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.”
Tomer Aboody, director of MT Finance: ” Whether we are seeing a new year bounce or whether the reduction in base rate at the end of last year is behind it, there is a buoyant mood in the housing market with good activity from buyers and sellers alike.
“However, with more stock soon to come to the market, this will surely keep prices in check.
“With the prospect of further rate reductions, we are hoping to see increased activity in the form of more transactions as the year pans out. Lower mortgage rates may not be enough though – encouragement from the government in the form of another stamp duty concession or reform may be required to boost activity in a meaningful way.”
Record January asking-price growth signals strong start to year
