UK house sellers have kicked off the year by pushing asking prices sharply higher, with the average home now listed at £368,031, almost £10,000 more than in December, according to new data from Rightmove.
The property portal said the 2.8 per cent monthly rise, equivalent to £9,893, marked the biggest January increase in its 25 years of tracking asking prices, as confidence returned after a subdued end to 2025.
The rebound has taken average asking prices back close to levels last seen in August, before speculation ahead of the autumn Budget unsettled buyers and sellers alike. Rightmove said sentiment has improved notably since Christmas, with activity surging in the opening weeks of the year.
Buyer demand, measured by enquiries sent to estate agents, rose by 57 per cent in the two weeks following Christmas Day compared with the fortnight before. At the same time, the number of new homes coming to market jumped by 81 per cent, suggesting many sellers delayed listing until the new year.
Colleen Babcock, a property expert at Rightmove, said the start to 2026 had been “encouraging”, with sellers clearly feeling more confident about testing higher prices.
“After several months of muted growth, it’s positive to see both buyers and sellers returning to the market,” she said. “However, while asking prices have risen, they are essentially back to where they were in the summer of 2025, before Budget-related uncertainty dented confidence.”
She cautioned that competition among sellers remains intense. The number of homes for sale is at its highest level for this time of year since 2014, giving buyers plenty of choice and limiting how far prices can realistically be pushed.
“New-year optimism is understandable, but sellers need to stay grounded,” Babcock added. “With lots of choice available, pricing correctly for local market conditions is still crucial to securing a sale.”
Mortgage conditions are also playing a role in the early-year uplift. Matt Smith, a mortgage expert at Rightmove, said borrowing costs were unlikely to move significantly in the near term.
“Rates are expected to remain fairly steady over the next few months, with only small fluctuations,” he said. “For buyers who have been waiting on the sidelines for better deals, current mortgage pricing may be about as good as it gets for a while.”
Agents on the ground say demand is strongest for homes that align with modern living needs. Myles Moloney, a director at Chase Buchanan estate agents in London, said properties that are well presented and sensibly priced are attracting the most interest.
“Family homes that are ready to move into and reflect how people want to live now are the ones really cutting through,” he said. “Buyers are active, but they’re selective.”
