The average price of homes newly listed on the market for sale has risen by 2.8% this month to £368,031, according to the latest Rightmove figures.
This is the largest increase in the month of January in Rightmove’s 25 years of house price index reporting and is also the largest month-on-month price increase of any month since June 2015.
After underperforming against historical averages in eight out of twelve months during 2025, particularly at the end of the year, national average property prices are now 0.5% higher than at this time last year.
January’s recovery brings average asking prices close to where they were in August 2025, as market sentiment rebounds from the rumours and uncertainty around the November Budget.
However, price trends in regions and local markets across Great Britain are more volatile, and while most regions rose in price this January, the East Midlands and Scotland buck the trend with price falls. The number of available homes on the market, and therefore the number of other sellers to compete with, is still at its highest level for this time of year since 2014. Additionally, a third of homes already on the market are having their asking price reduced. Therefore, sellers need to strike a balance between price ambition and market realism when setting their asking price to give themselves the best chance of finding a buyer and getting their home sold.
What’s happening with market activity?
Rightmove’s first look at market activity at the beginning of 2026 shows the scale of the activity rebound from the traditionally quieter December into the busier January. In the two weeks after Christmas Day, buyer demand, as measured by the number of people contacting agents to enquire about homes for sale, rose by 57%, and the number of homes newly listed for sale rose by 81% compared with the two weeks before Christmas Day. Rightmove recorded its busiest ever Boxing Day for visits to its platform. Over the last week, buyer demand is lower than last year, when buyer activity was boosted by some buyers trying to find a property and complete their purchase before stamp duty rose in England in April 2025. However, buyer demand is in line with 2024. "It’s an encouraging early snapshot", Rightmove says, and as the start of the year progresses it will become clearer if this momentum is maintained into the peak Spring selling season.
Mortgage rates see 'slow and steady drops'
While mortgage rates didn’t fall as far or fast as some anticipated at the start of 2025, the market saw slow and steady interest rate drops and a much more consistent and stable mortgage market last year. The average two-year fixed mortgage rate is at its lowest since before the disruptive mini-Budget in September 2022. The average two-year fixed mortgage rate is now 4.29%, compared with 5.03% at this time last year. Meanwhile, the cheapest available two-year mortgage rate for those with a larger deposit is 3.47%. This drop in the average mortgage rate means that someone purchasing a home at the national average asking price and with a 20% deposit would save over £100 a month on their mortgage compared to last year.
Colleen Babcock, property expert at Rightmove, commented: “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.”
