The UK housing market has experienced a significant new year bounce, with the average asking price of a home increasing by nearly £10,000 in just five weeks, according to property website Rightmove. This represents the largest monthly jump in a decade, with prices rising by 2.8% month-on-month to £368,031.
Rightmove attributes the surge to renewed optimism following speculation about property tax changes in the November budget, which had caused many buyers and sellers to delay decisions. The Bank of England's interest rate cut just before Christmas also boosted market confidence.
Despite the positive data, regional variations persist. The East of England saw above-average price rises of 3%, while the East Midlands and Scotland experienced falls of 0.6% and 0.4% respectively. Jeremy Leaf, a north London estate agent, noted that activity is 'definitely on the up' due to falling mortgage rates and inflation.
Separate figures from Hamptons showed that average private rents in Great Britain fell by 0.7% in 2025, the first annual decline since 2011, with the average tenant now paying £1,371 per month, £10 less than a year earlier.
