Property Market Update | January 2026
UK Property Market Update: A brighter start to 2026
We’ve hit the ground running this year and seen enquiries pick up sharply since New Year’s Day. Encouragingly, this isn’t just a local blip either, as early market signals across the UK point to a more positive, better-balanced property market as 2026 gets underway.
Demand is waking up early
The traditional “Boxing Day bounce” arrived with extra fizz. Rightmove recorded its busiest ever Boxing Day, with visits almost doubling (+93%) from Christmas Day to Boxing Day—an even bigger jump than last year’s record. That surge is a good real-time barometer of fresh buyer intent heading into January.
This aligns with what we’re seeing on the ground: motivated buyers are back in touch, diaries are filling with viewings, and well-presented homes are attracting swift interest.
Prices: broadly stable, after a soft finish to 2025
Headline indices show the market ended 2025 on a softer note, but importantly not in reverse on an annual basis:
Nationwide: UK prices up 0.6% year-on-year in December (seasonally adjusted), with a small monthly dip.
Halifax: average price £297,755, annual change +0.3%, monthly -0.6%.
Taken together, that’s a picture of stabilisation rather than sustained falls—exactly the kind of platform from which activity can build when borrowing costs ease and confidence improves.
Mortgage conditions are improving
Two things matter most for movers: the cost of borrowing and the choice of products.
The Bank of England reduced Bank Rate to 3.75% on 18 December 2025, the fourth cut since August.
Lenders have started the year by trimming pricing: HSBC became the first big name to cut mortgage rates in early January, a sign of competitive pressure returning.
According to Moneyfacts data, fixed rates have stayed below 5% into January, with the average 2-year fix ~4.83% and 5-year fix ~4.91%, and the number of available mortgages has climbed to over 7,100 products—the highest since 2007. More choice plus keener pricing = easier financing conversations for buyers and sellers alike.
While no one expects a return to ultra-low rates, this combination of lower Bank Rate, early-year lender competition and broader product choice is already feeding through to affordability and confidence.
The 2026 outlook: cautiously optimistic
Most forecasters expect modest growth this year, sensible, sustainable, and very workable for movers:
Rightmove projects +2% growth in new seller asking prices by year end, noting improving affordability and a healthier selection of homes.
Zoopla forecasts ~+1.5% average price growth in 2026 and, crucially, a stronger-than-usual start to the year as buyers who paused during the Autumn Budget period re-enter the market.
For sellers, flat-to-gently-rising prices coupled with rising enquiry levels is a sweet spot: deals can be agreed without the frenzy of 2021–22, but with enough momentum to keep chains moving.
What this means if you’re thinking of selling
1) Launching in January can pay off. With buyers already active and stock levels still normalising after December, well-priced, well-presented homes can stand out. We’re seeing strong click-throughs and faster early enquiries on new instructions.
2) Price with precision, not bravado. The market is balanced: realistic pricing attracts multiple viewings and better-quality offers, whereas over-stretching often pushes a listing into “stale” territory. We’ll benchmark your home against very recent local activity to position it perfectly.
3) Presentation is your profit centre. Light refreshes (paintwork, gardens, flooring touch-ups), strategic staging and professional photography all increase emotional appeal; still the decisive factor in securing the best offer in a market where buyers have choice.
4) Energy and compliance matter. Buyers remain cost-conscious. Simple efficiency wins (LEDs, draught-proofing, servicing the boiler, smart thermostats) and having the right documents ready (EPC, guarantees, planning/building regs) can shorten time to exchange.
5) Be chain-aware. With more mortgage products available and rates stabilising, proceedable buyers are on the move. If you’re able to break the chain (vacant possession, flexible dates), you’ll widen your buyer pool and strengthen your negotiating hand.
And if you’re buying
Agree a mortgage in principle early. Lender criteria and offers are more favourable than a year ago, and being finance-ready helps you move quickly on the right home.
Think five-year total cost. With fixed rates clustering just under 5%, consider fees, portability and overpayment options alongside the headline rate. We’re happy to introduce trusted advisers to run the numbers with you.
Our take
After a choppy 2025, the early weeks of 2026 are showing healthier, more confident conditions. Activity is up (we can feel it in our inboxes), prices look steady-to-gently-rising, and financing is more available and slightly cheaper than late last year. If you’ve been waiting for a sensible window to make your move, this is it.
Thinking of selling or curious what your home could achieve in today’s market? Let’s chat and put a plan together that takes full advantage of the current momentum.
