Record January price growth
Rightmove reports that average asking prices jumped by 2.8% in January, rising to £368,031, the biggest increase ever recorded for the month of January and the strongest monthly rise since June 2015. This represents a £9,893 uplift compared with December 2025.
On an annual basis, national asking prices now sit 0.5% higher than this time last year, marking a notable shift in sentiment following late‑2025 economic uncertainty.
Market drivers: Confidence returns
This surge has been fuelled by two major factors:
- The traditional Boxing Day bounce: Buyer demand increased by 57% in the two weeks following Christmas compared with the two weeks beforehand. Rightmove also recorded its busiest Boxing Day ever for platform visits.
- Improving affordability: The average two‑year fixed mortgage rate has fallen to 4.29%, its lowest level since before the September 2022 mini‑Budget, boosting confidence among movers.
These early-year indicators suggest a decisive improvement in market sentiment, with more movers looking to progress plans sooner rather than waiting for the spring.
Market activity and supply conditions
While demand is rising, supply is also unusually strong:
- The number of homes for sale is at its highest January level since 2014.
- One-third of existing listings have seen at least one price reduction, reflecting the competitive environment.
Rightmove cautions that sellers should remain realistic buyers have greater choice, and over‑optimistic pricing may limit interest.
Asking prices by buyer segment
All buyer categories saw increases this month:
- First‑time buyers: £225,544 (+1.6%)
- Second‑steppers: £341,131 (+2.0%)
- Top of the ladder: £658,658 (+2.6%)
This broad-based rise suggests confidence returning across the full spectrum of the market—not just in premium properties.
Improved affordability supports activity
Rightmove’s mortgage tracker highlights concrete improvements:
- The average two-year fixed rate has dropped to 4.29%, down from 5.03% a year ago.
- For a buyer purchasing at the national average asking price with a 20% deposit, this equates to a saving of over £100 per month.
Higher wages relative to house prices and early‑2026 lender rate cuts are further improving buyer affordability.
Regional variations
While most areas experienced price rises, some regions such as the East Midlands and Scotland recorded modest declines, highlighting ongoing local volatility despite strong national figures.
What this means for Housebuilders and Developers
The January data paints an encouraging picture for the 2026 pipeline:
- Buyers are returning earlier than usual, accelerating enquiry levels well ahead of spring.
- Improving affordability is unlocking movement among both first‑time buyers and second‑steppers.
- High stock levels mean competition remains strong positioning, pricing, and product differentiation will be key to capturing motivated early‑year buyers.
- The market is recovering from late‑2025 uncertainty, with asking prices now back to summer 2025 levels.
Overall, the Rightmove HPI indicates a market that is gaining momentum, with renewed confidence and improved financial conditions supporting a healthier start to the year.
