Rightmove has reported a noticeable rise in UK property asking prices at the start of the year, suggesting renewed confidence in the housing market. In January, the average asking price increased by 2.8%, making it the strongest monthly uplift recorded since June 2015. This marks a significant shift following a subdued period at the end of 2025, when uncertainty around the Autumn Budget weighed on both sellers and buyers.
The average asking price of a home across Britain now stands at £368,031. This represents a monthly increase of £9,893, the highest jump ever recorded for January since Rightmove began tracking house prices 25 years ago. The figures indicate that sellers are entering 2026 with more optimism, encouraged by returning buyer interest and improving financial conditions.
Rightmove noted that this recovery brings asking prices back in line with the levels seen in August 2025. The market had slowed down towards the end of last year, largely due to concerns over potential tax and policy changes announced in the Autumn Budget. As these uncertainties begin to settle, both sellers and buyers appear more willing to move forward with property transactions.
However, Rightmove has urged sellers not to become overly enthusiastic. The portal highlighted that the volume of homes currently listed for sale is at a 12-year high for this time of year, meaning buyers have a wider selection of properties to choose from. With increased competition among sellers, pricing a home realistically remains essential for securing a sale.
Colleen Babcock, a property expert at Rightmove, explained that many sellers are now confident enough to bring their homes to market at higher asking prices. She observed that this reflects a healthier start to the year, especially as more potential buyers have returned to their property searches after a quieter festive season.
At the same time, Babcock cautioned that fast-rising prices may create challenges for some buyers, particularly first-time purchasers. She stressed that while prices have rebounded, they are only returning to levels seen before budget speculation unsettled the market in mid-2025, rather than indicating a dramatic new surge in values.
Data from Rightmove shows that roughly one-third of the homes currently on the market have already undergone price reductions. This suggests that although seller confidence has improved, many homeowners still need to adjust their expectations to match current buyer demand and affordability levels.
Rightmove also recorded strong levels of activity on its platform over the Christmas period. It reported a record number of visits on Boxing Day, followed by a sharp rise in property searches in early January. This increase in online engagement has helped support the early-year boost in asking prices.
Improving affordability has played a key role in strengthening buyer demand. Rightmove highlighted that average wages have risen faster than property prices, giving buyers more financial flexibility when considering a move. This has contributed to the stronger start seen in the housing market this year.
Mortgage conditions have also shifted in favour of buyers. Many major lenders have reduced their mortgage rates in recent weeks, making borrowing more affordable and increasing purchasing power for both new buyers and those looking to remortgage or upgrade their homes.
Matt Smith, Rightmove’s mortgage expert, said that rates are likely to remain fairly steady over the next few months, with only minor adjustments expected. He added that buyers who have been waiting for more attractive mortgage deals may now be seeing some of the most competitive offers available for the foreseeable future.
Estate agents are observing similar trends. Myles Moloney, director at Chase Buchanan Estate Agents in London, said that homes which are well-presented, priced sensibly and suited for modern family living are generating the strongest levels of buyer interest. This highlights the importance of realistic pricing and strong presentation in a competitive market.
While the sales market has strengthened, the rental sector has shown signs of easing. A separate report from Hamptons revealed that newly agreed rents across Britain fell by 0.7% during 2025, marking the first annual decline since Hamptons began recording this data in 2011.
According to Hamptons, the average tenant moving into a rental property now pays £1,371 per month, which is £10 less than in 2024. Although this suggests softer rental growth overall, the report noted that trends vary across different regions of the UK.
For instance, London saw a 2.7% fall in new rental prices, while regions such as the North West and West Midlands experienced moderate rent increases. This indicates that while demand has cooled in some areas, the rental market remains resilient in others.
Aneisha Beveridge, head of research at Hamptons, explained that falling rents were driven largely by stronger first-time buyer activity and broader economic pressures rather than by a significant improvement in tenant affordability. She added that fewer people are now entering the rental market for the first time, with many choosing to stay at home longer instead.
Hamptons’ lettings index is based on achieved rents rather than advertised prices, making it a more reliable reflection of what tenants are currently paying. This helps provide a clearer view of real rental trends across Britain.
Overall, the latest figures from Rightmove and Hamptons suggest that the UK housing market is starting 2026 on a more stable and confident footing. Asking prices and buyer demand are showing signs of recovery, yet the high level of available stock means sellers must remain realistic and competitive to attract buyers.
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