Largest ever January price jump, as market sentiment rebounds after the Budget

The average price of homes coming to the market for sale rises in January to £368,031, a 2.8% increase from December (+£9,893). This is the largest ever price increase seen in the month of January, and the largest of any month since June 2015:

National average property prices are now 0.5% ahead of this time last year as prices rebound after the Budget, however, the number of available homes for sale is the highest it's been at this time of year since 2014, and with a third of existing homes for sale seeing a price reduction, new sellers should be wary of being too optimistic on price.

This record January price increase comes as home-movers return to the market, with the traditional Boxing Day bounce combining with a recovery in market sentiment after the uncertainty of the Budget.

An early snapshot of activity shows that in the two weeks post-Christmas, buyer demand rose by 57% compared to the two weeks before Christmas, while the number of newly-listed homes for sale jumped by 81%.

Rightmove recorded its busiest Boxing Day ever for visits to the platform, as movers began their 2026 search.

Over the last week, buyer demand is lower than the stamp-duty-fuelled start to 2025, but in line with 2024. Buyers can plan a new year move with less financial uncertainty alongside improved affordability for many.

The daily mortgage tracker shows that the average two-year fixed mortgage rate is at its lowest since before September 2022’s mini-Budget, as many major lenders cut rates to capitalise on new year activity.

Price & activity trend

Regional trends

Affordability trends

January Sees Record Price Growth as Market Confidence Returns

January has delivered a strong and encouraging start to the year for the property market, with asking prices rising at the fastest rate ever recorded for this time of year.

The national average asking price of homes coming to the market now stands at £368,031, marking a 2.8% increase in just one month. This is not only the largest January rise on record, but also the strongest monthly increase seen since mid-2015. Prices are now 0.5% higher than this time last year, showing a clear rebound in confidence after a more cautious end to 2025.

Buyer activity is back

Following the festive slowdown, buyer demand has surged as the new year began. Enquiry levels jumped sharply after Christmas, with many movers using the traditional Boxing Day period to kick-start their search. At the same time, the number of new properties coming to market rose significantly, showing that sellers are also returning with renewed confidence.

This early-year momentum is a positive signal as we move towards the important spring selling season.

A competitive but active market

While prices are rising, it’s important to note that stock levels are high. There are more homes available for sale now than at this point in any year since 2014, and around one in three properties currently on the market has already had a price reduction.

This means that although buyers are active, they are selective. Correct pricing remains crucial. Homes that are priced realistically are attracting strong interest, while over-optimistic pricing risks missing the early-year surge in demand.

Improved affordability supports demand

Mortgage rates have continued to ease, creating better affordability for many buyers. The average two-year fixed mortgage rate is now around 4.29%, the lowest level seen since before late 2022. For many home-movers, this translates into monthly savings of £100 or more compared to last year, which is helping buyers feel more confident about making a move.

What this means if you’re thinking of selling

We’re seeing a combination of:

• Rising asking prices

• Increased buyer enquiries

• Improved mortgage affordability

• Strong early-year momentum

All of this makes now a very good time to consider selling, particularly if your property is well-presented and sensibly priced.

That said, today’s market still rewards realism. Buyers have choice, and the homes that sell quickest are those that are priced in line with local demand rather than headline national figures.

At I Am The Agent, we make it easy to get your property market-ready, giving you full control with expert support every step of the way.

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