Rightmove: January saw the biggest increase in real estate asking prices in 25 years

According to data, there was a 28 percent increase in property asking prices as a result of the traditional Boxing Day bounce and post-Budget optimism

As the market recovered from a Christmas lull and pre-Budget uncertainty, house asking prices surged by the largest margin on Rightmove between December and January.

From 358,138 to 368,031 (2.8 percent), the average asking price on the property website increased by 9,893 per month.

The increase is the biggest month-over-month increase since June 2015 and the biggest jump from December to January since Rightmove introduced its House Price Index (HPI) 25 years ago.

According to the real estate website, average asking prices have increased by 0.5 percent since January 2025.

However, some parts of the UK saw declines in asking prices in January, including the East Midlands and Scotland.

According to Rightmove, the number of available homes is at its highest January level since 2014, which may cause prices to decline.

In the meantime, Rightmove property expert Colleen Babcock cautioned against overpricing homes because it might make them more difficult to sell.

"This year's seller confidence is encouraging, but sellers would be wise to follow their agent's advice when determining their asking price and refrain from being overly optimistic," Babcock stated.

After Christmas, demand from buyers rises.

Rightmove reported that during Christmas, it had the most Boxing Day website visits ever. In contrast to the two weeks prior to December 25, buyer demand increased by 57% in the two weeks following Christmas Day.

Rightmove calculates buyer demand by counting the number of people who get in touch with real estate brokers to ask about available properties.

It stated that while buyer demand at the start of 2026 was consistent with 2024 figures, it was weaker than in 2025, when buyers flooded the market prior to the temporary increase in stamp duty thresholds ending.

"A record number of visits to Rightmove on Boxing Day and a significant uptick in activity after a quieter festive period have set the tone for a positive start to the year," stated Babcock. The "

What do you think will happen to home prices in 2026?

After stamp duty thresholds were lowered in the spring and the market remained cautious prior to the Budget, the housing market experienced a turbulent 2025 as demand declined.

Prices have also been dampened by higher mortgage rates. Estate agency Hamptons anticipates a modest 2.5 percent increase in home prices, while lender Halifax has projected a 3 percent increase.

Nearly 15% of Londoners sold their homes for less than they bought them in 2025, which is higher than the national average of 8.7% and the highest percentage in England and Wales, according to separate research released recently by Hamptons.

However, there are indications that the market is beginning to improve.

The most recent Residential Market Survey for December from the Royal Institution of Chartered Surveyors (RICS) shows expectations for home sales and house prices have turned more positive following months of uncertainty.

Many lenders, including Nationwide and HSBC, have lowered their mortgage rates in recent weeks as a result of the Bank of England's (BoE) December base rate cut from 4 percent to 3.75 percent.

In 2026, there may be above-average house price growth in some areas of the United Kingdom.

Although reports vary, they generally indicate that Northern England, Scotland, and Northern Ireland will see the biggest increases in property values.

On the other hand, Southern England and London, which currently have the highest housing costs, are predicted to see the least growth.