The UK property market has kicked off the new year with a significant surge, recording its most substantial monthly asking price increase in a decade, according to fresh data.
A Record-Breaking January Bounce
The property portal Rightmove reported that the average price tag on a home coming to market soared by nearly £10,000 in just five weeks. This represents a monthly jump of 2.8%, or £9,893, pushing the typical asking price to £368,031. This is the most significant rise recorded in the month of January for 25 years and the largest increase in any single month since June 2015.
The figures, compiled from tens of thousands of properties listed with estate agents between 7 December and 10 January, indicate a market regaining confidence. Experts point to two key factors: the resolution of pre-budget speculation on property taxes and a boost from the Bank of England's interest rate cut just before Christmas.
Drivers of Market Optimism
In the lead-up to the Chancellor's November statement, rumours of potential stamp duty changes caused a slump, with many buyers and sellers postponing plans. "People are in a panic," TV presenter Kirstie Allsopp noted at the time. However, the announced measures, including a council tax surcharge for homes in England valued over £2m, were "not as punitive as many expected," according to north London estate agent Jeremy Leaf.
This, combined with falling mortgage rates and inflation, led to a collective sigh of relief. Buyer demand surged by 57% in the two weeks after Christmas compared to the fortnight before, while new seller listings jumped by an impressive 81%.
Regional Variations and First-Time Buyer Challenge
While the headline figure paints a rosy picture for homeowners, it masks considerable regional disparities. The East of England saw above-average growth of 3%, while the East Midlands and Scotland bucked the national trend with price falls of 0.6% and 0.4% respectively.
The sharp rise will also be unwelcome news for prospective first-time buyers already facing hurdles to homeownership. However, Rightmove's property expert, Colleen Babcock, noted that asking prices have merely returned to levels seen in the summer of 2025, before the budget rumours began.
In a separate development, data from estate agent Hamptons showed that average private rents in Great Britain finished 2025 slightly lower than they started—the first full-year decline in their records, which began in 2011. The average rent on a newly let property ended the year at £1,371 per month, a decrease of £10 monthly.
