📈 Largest Ever January Price Jump as Market Confidence Returns
January 2026 has delivered the strongest start to the year the housing market has ever seen, with asking prices recording their largest January increase on record.
According to the latest data from Rightmove, the average price of homes coming to the market rose by 2.8% in January, increasing by £9,893 to £368,031. This is not only the biggest January rise ever recorded, but the largest monthly increase since June 2015.
🔍 What’s Driving the Surge?
The jump in prices reflects a sharp rebound in confidence following the uncertainty of the UK Budget, combined with the traditional Boxing Day bounce.
Rightmove reported its busiest Boxing Day ever, with buyers kicking off their 2026 property searches early. In the two weeks after Christmas alone:
Buyer demand increased by 57%
New property listings surged by 81%
This renewed activity shows movers are feeling more confident about making plans in the year ahead.
💷 Mortgage Rates Improving
Encouragingly, affordability is also improving. Rightmove’s daily mortgage tracker shows the average two-year fixed mortgage rate has dropped to 4.29%, its lowest level since before the 2022 mini-Budget. Many major lenders are reducing rates to attract new-year buyers, giving movers greater certainty when planning their next step.
⚠️ A Note of Caution for Sellers
Despite the headline-grabbing price growth, sellers should remain realistic. The number of homes available for sale is at its highest level for this time of year since 2014, and around one in three existing listings has already seen a price reduction.
This means pricing correctly from day one remains crucial. While demand is strong, buyers are still price-sensitive and well-informed.
🏡 Market Breakdown (Excluding Inner London)
First-time buyers
Average asking price: £225,544
Monthly change: +1.6%
Second-steppers
Average asking price: £341,131
Monthly change: +2.0%
Top of the ladder
Average asking price: £658,658
Monthly change: +2.6%
✅ What This Means for You
Thinking of selling? Demand is strong, but accurate pricing is key to securing a sale.
Looking to buy? Mortgage rates are easing, creating better affordability and less uncertainty.
Not sure where you stand? A professional valuation and mortgage review can make all the difference.
📞 Book your free, no-obligation valuation at www.rokmarsh.co.uk
🏡 Check affordability or speak to a mortgage advisor at www.rbmsolutions.co.uk
