The UK housing market has begun the year with a record monthly rise in prices, according to property website Rightmove. The average home increased by just under £9,900 to £368,031 in January, a 2.8% jump – the largest January increase since Rightmove began reporting 25 years ago and the biggest month-on-month rise since June 2015.
Rightmove attributed the bounce to a rebound from the uncertainty surrounding Chancellor Rachel Reeves' Budget in late November, which had dampened activity. Buyer demand in the two weeks after Christmas surged by 57% compared with the previous fortnight, while the number of newly listed homes rocketed by 81%. The market has also been supported by a series of mortgage rate cuts from major lenders at the end of 2025 and the start of this year.
However, Rightmove cautioned that the market remains challenging. The number of homes for sale is at its highest for this time of year since 2014, and a third of existing properties have seen price reductions. Regional disparities persist, with most areas reporting increases but the East Midlands and Scotland experiencing falls.
Colleen Babcock, a property expert at Rightmove, said the encouraging start reflected seller confidence, but warned against over-optimism. "Asking prices are only back to where they were in the summer of 2025 before the Budget rumours began," she noted, emphasising that buyers have ample choice and sellers must be realistic.
Estate agents have also observed heightened activity. Myles Moloney of Chase Buchanan in London said family homes with modern open-plan kitchens and good schools are attracting strong interest, with many buyers seeking to move early in 2026 rather than wait for spring. "Homes that are well presented, priced sensibly, and set up for modern family living are the ones cutting through," he said.
