## January 2026 Marks Significant House Price Growth

The average asking price for newly listed homes in the UK rose sharply to £368,031 in January 2026, representing a 2.8% increase from December 2025. This £9,893 monthly uplift is the largest January rise ever recorded and the strongest monthly increase since June 2015, according to data from Rightmove. National prices now stand 0.5% higher than a year ago, signalling a recovery in market confidence after the uncertainty caused by last autumn’s Budget announcements.

For landlords and letting agents, this price movement suggests a more buoyant market environment at the start of the year, with sellers showing increased confidence in setting higher asking prices. However, the market remains competitive, with a third of properties already on sale having reduced their prices, indicating that buyers still have negotiating power.

## Increased Stock and Seller Confidence

Rightmove reports that the number of homes available for sale is at its highest level since 2014, providing buyers with a wide choice. Colleen Babcock, a property expert at Rightmove, commented: “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.”

She added that asking prices have only returned to levels seen in summer 2025 before Budget rumours unsettled the market. This renewed seller confidence is a positive sign for the market’s stability, but the presence of many price reductions shows that competition remains intense.

For landlords, the increase in stock levels may mean more options for portfolio expansion or tenant sourcing, but also highlights the importance of competitive pricing strategies to attract tenants in a market where buyers and renters have more choice.

## Buyer Activity Surges Post-Christmas

The price rebound coincides with a significant rise in buyer activity. Rightmove recorded a 57% increase in buyer enquiries in the two weeks following Christmas compared to the fortnight before. New property listings also surged by 81%, with a particularly strong Boxing Day bounce. The platform experienced its busiest day ever for traffic during this period.

While this demand does not match the stamp-duty-driven rush seen at the start of 2025, it aligns broadly with levels recorded in 2024. This suggests a stabilising market where buyer interest is returning steadily, which is encouraging for landlords considering letting or selling properties.

## Regional Variations and Mortgage Rates

Most UK regions saw house price increases in January, although the East Midlands and Scotland recorded month-on-month declines, reflecting some regional variation in market conditions.

Rightmove’s mortgage tracker shows that the average two-year fixed mortgage rate has fallen to 4.29%, down from 5.03% a year earlier. This is the lowest level since before the September 2022 mini-Budget. The cheapest two-year deals for borrowers with larger deposits now start from 3.47%.

Lower mortgage rates can improve affordability for buyers and investors, potentially supporting further market activity. Landlords should monitor these trends closely, as changes in borrowing costs can influence investment decisions and tenant demand.

## What This Means for Landlords and Agents

The strong start to 2026 with rising house prices and increased buyer interest indicates a more active market following a period of uncertainty. Landlords may find opportunities to adjust rents in line with improving market conditions, while letting agents should prepare for higher enquiry volumes and more competitive stock levels.

However, the ongoing presence of price reductions and regional disparities means that careful market analysis remains essential. Competitive pricing and understanding local market dynamics will be key to maximising returns and occupancy rates in the coming months.

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– average asking price
– buyer confidence
– property market trends
– mortgage rates
– regional house price variations
– housing stock levels
– price reductions
– buyer enquiries
– landlord investment strategies
– letting agent market insights

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/