Rightmove data show sharp rebound as post-Budget confidence returns
The average asking price of newly listed homes rose by 2.8% in January, an increase of £9,893, taking the typical new seller price to £368,031, according to the latest Rightmove House Price Index.
This is the biggest January rise since the index began 25 years ago and the largest month-on-month jump since June 2015.
After lagging historical averages through much of 2025, particularly in the final quarter, national asking prices now stand 0.5% above their level a year ago. January’s gain takes average prices back towards where they were in August 2025, following a recovery in sentiment after uncertainty surrounding the November Budget.
Regional trends are less uniform. While most areas of Great Britain recorded increases in January, the East Midlands and Scotland saw falls in average asking prices, underlining continued volatility at local level.
Rightmove cautioned that sellers still face intense competition. The volume of homes on the market is at its highest for this time of year since 2014, and around one in three listings has already had its asking price reduced. For agents and brokers, the data point to a market where pricing strategy remains critical, despite the headline rebound.
Source: Rightmove
“It’s an encouraging start to the year to see sellers confident enough to list their homes at higher prices after several months of muted price growth last year, coinciding with more potential buyers returning to market,” said Colleen Babcock (pictured right), property expert at Rightmove. “This new year seller confidence is a good sign, but sellers would do well to listen to the guidance of their agent when setting their asking price and avoid being over-optimistic.
“There’s a twelve-year high number of homes for sale for this time of year, so buyers have lots of choice, and a third of properties that were already on the market for sale have had a price reduction. This means that sellers need to be realistic and balance the price they want to achieve with the likelihood of being able to find a buyer in their local market at that price.”
Activity rebounds after the festive period
Rightmove’s early read on 2026 activity shows a marked shift from December’s seasonal slowdown into January’s busier conditions.
In the two weeks after Christmas Day, buyer demand – measured by the number of people contacting agents about properties for sale – rose by 57% compared with the two weeks before Christmas. New listings increased by 81% over the same period, underlining the strength of the traditional Boxing Day bounce.
Rightmove reported its busiest Boxing Day on record for visits to its platform. Over the most recent week, demand is running below the same period last year, when some buyers accelerated purchases ahead of the April 2025 stamp duty increase in England. However, enquiry levels are in line with 2024, suggesting a more typical seasonal pattern.
For mortgage intermediaries, the figures indicate a larger pool of active sellers and a steady, if not surging, level of buyer interest heading into the first quarter. Whether this momentum carries into the peak spring selling season remains to be seen.
Mortgage rates at lowest level since before mini Budget
Mortgage pricing has eased compared with a year ago, following a period of gradual reductions through 2025 and sharper headline cuts by major lenders at the end of last year and into early 2026.
The average two-year fixed rate now stands at 4.29%, down from 5.03% a year earlier, and is at its lowest level since before the September 2022 mini Budget. For borrowers with larger deposits, the cheapest two-year fixed rate available is 3.47%.
On Rightmove’s figures, a buyer purchasing at the current national average asking price with a 20% deposit would save more than £100 per month on mortgage payments compared with the same point last year. For brokers, this combination of improved affordability metrics and rising asking prices may support renewed conversations with clients who paused moves in late 2025.
“It’s early days but there are encouraging signs that more home-movers are now planning a 2026 move as we head towards the important Spring buying and selling season,” Babcock said. “A record number of visits to Rightmove on Boxing Day and a big bounce in activity following a quieter festive period have set the tone for a positive start to the year.
“Many buyers have seen their affordability improve with average wage rises outstripping average property prices. Mortgage rate cuts at the end of 2025 and beginning of 2026 will also support those who are looking to move and come as some very good news at the start of the year, with a typical home-mover seeing their affordability improved by around £100 a month.”
For mortgage professionals, the data suggest a market at an early stage of recovery: stock levels are high, pricing power is returning in some segments, and lower rates are easing monthly costs. However, competitive pressure on sellers and regional divergence in price movements mean that local conditions and careful affordability assessments remain central to advice.
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