The UK property market has started 2026 on a positive footing, with asking prices recording their biggest monthly rise in a decade, according to new data from Rightmove.

The average price of a home coming onto the market has increased by almost £10,000 in just five weeks, signalling renewed confidence among sellers and a sharp rebound in buyer demand following late-2025 uncertainty.

Average UK House Prices Jump by Nearly £10,000

Rightmove data shows that the average new seller asking price rose by 2.8% month on month, an increase of £9,893, taking the typical UK asking price to £368,031.

This represents:

• The largest January price rise in 25 years
• The biggest monthly increase since June 2015

The figures are based on tens of thousands of homes listed between 7 December and 10 January, capturing the traditional New Year uplift in market activity.

Budget Clarity and Interest Rate Cuts Boost Market Confidence

Much of the renewed momentum follows a period of hesitation in late 2025, when speculation around potential property tax changes in the November Budget caused many buyers and sellers to delay decisions.

Confidence returned after:

• Budget announcements proved less punitive than feared
• The Bank of England cut interest rates shortly before Christmas
• Mortgage rates and inflation continued to ease

Jeremy Leaf, a north London estate agent and former RICS residential chair, said activity is “definitely on the up, buoyed by falling mortgage rates and inflation,” even though Rightmove tracks asking prices rather than completed sales.

Buyer Demand and New Listings Surge After Christmas

Rightmove also reported a sharp rise in market activity:

• Buyer demand increased by 57% in the two weeks after Christmas compared with the two weeks before
• New property listings jumped by 81% over the same period

This suggests that many movers who paused plans in autumn are now re-entering the market with renewed confidence.

Asking Prices Contrast With Mortgage Lender Data

The upbeat Rightmove figures contrast with more cautious data from major lenders. Both Halifax and Nationwide reported modest house price falls in December, of 0.6% and 0.4% respectively.

However, analysts note that asking prices often lead transaction data, meaning stronger completed sales figures could follow later in the year.

First-Time Buyers Still Face Affordability Pressures

While rising prices will reassure existing homeowners, affordability remains a challenge for first-time buyers. Rightmove said current asking prices are only back to summer 2025 levels, before budget rumours began affecting sentiment.

Property expert Colleen Babcock added that the recent increases reflect a return to normal market conditions, rather than runaway price growth.

Regional House Price Variations Across the UK

Despite the national average rise, price movements vary widely by region:

• East of England: +3% month on month
• East Midlands: −0.6%
• Scotland: −0.4%

These differences highlight the importance of local market analysis for buyers, sellers, and investors.

UK Rental Market Shows Signs of Cooling

Separate figures from Hamptons indicate a shift in the rental market. Average private rents in Great Britain ended 2025 lower than they started for the first time since records began in 2011.

Key rental data:

• Average newly let rent fell 0.7% in 2025
• Typical monthly rent now £1,371
• £10 per month lower than a year earlier

This easing could provide some relief for tenants, while signalling a more balanced outlook for landlords.