Average UK house price records biggest increase in over a decade

The average price tag on a home has recorded its biggest increase since June 2015, jumping by 2.8 per cent in January, according to Rightmove.

The property website said the average asking price rose £9,893 to £368,031 in January, the biggest for the month in its 25 years of house price studies.

January’s recovery brings average asking prices close to where they were in August 2025, as market sentiment rebounds from uncertainty leading up to the autumn budget, Rightmove said.

But the website said sellers should not get carried away with new year enthusiasm, adding that the number of available homes on the market – and the number of other sellers to compete with – is at its highest level for this time of year since 2014.

Colleen Babcock, a property expert at Rightmove, said: “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 the market.

“Some buyers, particularly first-time buyers, won’t want to see prices rising too quickly. However, asking prices are only back to where they were in the summer of 2025 before the budget rumours began surfacing, which unsettled the market and dented confidence.

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“This new year seller confidence is a good sign but sellers would do well to listen to the guidance of their agent when setting their asking price and avoid being over-optimistic. There’s a 12-year high number of homes for sale for this time of year, so buyers have lots of choice, and a third of properties that were already on the market for sale have had a price reduction.

“This means that sellers need to be realistic and balance the price they want to achieve with the likelihood of being able to find a buyer in their local market at that price.”

She added: “A record number of visits to Rightmove on Boxing Day and a big bounce in activity following a quieter festive period have set the tone for a positive start to the year.

“Many buyers have seen their affordability improve with average wage rises outstripping average property prices.”

Many mortgage lenders have cut their rates in recent weeks, in a boost to home buyers.

Matt Smith, a mortgage expert at Rightmove, said mortgage rates are “likely to be steady for the next few months, with only minor changes up or down”.

He added: “Those who have been waiting for cheaper mortgage rates before acting might currently be seeing some of the best deals that will be around for a while.”

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Myles Moloney, director at Chase Buchanan Estate Agents in London, said: “Homes that are well presented, priced sensibly, and set up for modern family living are the ones cutting through and attracting the highest levels of attention.”

Meanwhile, a separate report from property firm Hamptons found that newly agreed rents dipped by 0.7 per cent on average across Britain in 2025, marking the first time rents fell over a full calendar year since its records started in 2011.

Hamptons said the average tenant moving into a property paid £1,371 per month – £10 a month less than the previous year.

Delving deeper into the overall average figure, some parts of Britain recorded annual falls in new let prices, while some saw increases.

Aneisha Beveridge, head of research at Hamptons, said: “On paper, 2025 looked like a good year for tenants.

“Rents on new lets ended 2025 lower than they started and tenants had more choice than before. However, falling rents were driven more by strong first-time buyer numbers and wider economic weakness than by improved tenant affordability.

“Fewer tenants are taking their first step into the rental market, with many staying at home longer and being reluctant to commit to the cost of renting a place of their own.”

The Hamptons lettings index uses data from the Connells Group to track changes to the cost of renting and is based on achieved rather than advertised rents.

Here is the average monthly rent for a new let in December 2025 and the annual change, according to Hamptons: