According to data from the property website Rightmove, asking prices for residential properties in the UK rose at a record pace in January, indicating a recovery in market sentiment following the volatility triggered by the government's budget announcement.
The online real estate platform reported that the average asking price increased by 2.8% month-on-month to £368,031 (approximately $492,425). This rise marks the largest January increase in the 25-year history of the Rightmove House Price Index and is also the largest monthly gain since June 2015.
The January rebound pushed prices up by 0.5% compared to the same period last year, bringing them close to levels seen in August, when discussions about the timing and content of the Autumn Budget first began to surface. UK house prices had faced downward pressure as the property market stalled while awaiting the budget, and its delayed announcement led to a period of buyer inactivity, causing unseasonal declines in asking prices that persisted until the end of 2025.
However, Rightmove cautioned that regional trends remain uneven. While most areas experienced price increases—with the Northeast recording the largest surge of 7%, pushing the average price to £197,264—the East Midlands and Scotland bucked the trend, with prices falling by 0.6% and 0.4% to £280,598 and £187,139, respectively. London prices rose by 2.8% month-on-month, reaching an average of £679,782.
Despite the record price growth, supply remains high. The number of homes available for sale is at its highest level for this time of year since 2014, with one-third of properties already on the market having seen their asking prices reduced.
"Sellers need to strike a balance between their pricing expectations and market realities," stated Rightmove, emphasizing that in a well-supplied market, realistic pricing remains crucial for securing a buyer.
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