UK property market January surge: Rosindell defection

Published: 19 January 2026. The English Chronicle Desk. The English Chronicle Online.

The UK housing market shows early signs of recovery, as the UK property market sees the largest January asking price increase in a decade. Rightmove reported that the average asking price for a home jumped almost £10,000 in just five weeks, reflecting renewed optimism among sellers and buyers. This surge follows speculation over potential property tax changes in the November budget, which briefly slowed market activity, alongside the Bank of England’s interest rate cut just before Christmas.

Rightmove’s data indicated that the average new seller asking price rose by 2.8%, equivalent to £9,893, reaching £368,031. This marks the largest increase in January in 25 years and the highest monthly growth since June 2015. Analysts say the figures signal a positive market shift, even as Halifax and Nationwide reported slight house price falls in December, of 0.6% and 0.4% respectively.

Jeremy Leaf, a north London estate agent and former RICS residential chair, explained that although asking prices differ from completed sale prices, market activity is clearly improving. Falling mortgage rates and easing inflation have encouraged buyers and sellers to return, especially after fears surrounding property tax changes proved less severe than initially anticipated.

In the weeks leading up to the chancellor’s 26 November statement, intense speculation over stamp duty caused many homeowners and buyers to pause plans. TV presenter Kirstie Allsopp noted that “people are in a panic” about potential changes and were largely sitting tight. When the budget was unveiled, the main measure affecting the property market was a council tax surcharge for homes valued over £2 million, leaving most buyers relieved.

Rightmove reported a 57% increase in buyer demand in the two weeks after Christmas compared with the fortnight before, while newly listed homes rose by 81%. Colleen Babcock, a property expert at Rightmove, noted that asking prices have now merely returned to levels seen before the summer of 2025, when budget rumours first emerged.

Despite the encouraging headline figures, regional variations remain stark. The east of England recorded above-average asking price growth of 3%, while the East Midlands and Scotland saw modest falls of 0.6% and 0.4%, respectively. These disparities reflect local supply and demand pressures, demonstrating that the recovery is uneven across the UK.

Rents, however, show a different pattern. Hamptons data indicated that average private rents in Great Britain ended 2025 below their start-of-year levels for the first time since 2011. Tenants moving into newly let properties paid an average of £1,371 per month, down £10 compared with the previous year, marking the first annual decline in over a decade.

Experts warn that while homeowners may welcome rising asking prices, first-time buyers continue to face challenges entering the market. Rising prices and limited supply in key areas risk prolonging affordability pressures. Nonetheless, the current momentum suggests that the UK property market is stabilizing after months of uncertainty, with buyers and sellers adjusting to a post-budget environment.

Analysts remain cautious, however, noting that interest rate trends and potential economic shifts in 2026 could influence the trajectory of house prices. Meanwhile, the positive January surge has sparked renewed confidence in estate agents, who report stronger buyer enquiries and more homes being listed than at any point since early 2025.

Overall, the data underscores a UK property market that is regaining energy and optimism, driven by eased financial pressures and greater certainty following policy announcements. Both agents and prospective buyers are now more active, hinting at a potential acceleration in sales as 2026 progresses. With asking prices rebounding and regional differences beginning to narrow, the market outlook appears cautiously positive, though challenges for first-time buyers remain an ongoing concern.

The average rise in asking prices, combined with increased buyer activity, signals a stabilising UK property market after months of uncertainty. Rightmove and other estate agents are reporting growing confidence, as homeowners return to market and prospective buyers adjust expectations. Analysts predict that this renewed momentum could sustain house price increases in the short term, while affordability pressures will likely remain significant in major urban centres.

The UK property market now seems set on a path of moderate growth, supported by lower mortgage rates and clearer tax rules. Homeowners can expect steadier demand, and while first-time buyers face continued obstacles, a more predictable market may provide opportunities for careful planning. Regional disparities will continue to shape the property landscape, but overall, early 2026 is demonstrating the resilience of the housing sector in the UK.

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