January 2026 has delivered a notable surprise in the UK housing market, not because mortgage rates changed dramatically, but because asking prices jumped sharply across the country.
According to Rightmove, average asking prices rose by almost £10,000 in January, marking the largest month-on-month increase recorded for that month in more than two decades.
This sudden rebound in seller confidence follows a period of uncertainty surrounding the autumn Budget and now shows a market that’s waking up early in the year. With more homes listed and buyer enquiries rising, it’s a development that could have important implications for anyone thinking about buying, moving or remortgaging in 2026.
Why Asking Prices Rose in January
Traditionally, January is a quieter month for the property market. Yet this year, Rightmove’s data shows:
- A 2.8% rise in average asking prices compared to December
- New listings up significantly
- Buyer enquiries increasing sharply after Christmas
Analysts say this reflects renewed confidence among sellers and buyers alike, as market uncertainty eases and economic signals become clearer.
For buyers, this doesn’t necessarily mean prices will continue rising indefinitely, but it does signal a market where competition can matter, especially early in the year.
What This Means for Mortgages
You might assume rising prices will make mortgages harder to afford, and for some borrowers, that’s true. However, several trends offer a more balanced perspective:
1. Mortgage rates are expected to ease gradually throughout 2026 as base rates remain under downward pressure. While dramatic rate cuts are unlikely overnight, modest improvements in affordability are forecast.
2. Greater choice and availability could help buyers compare products more effectively, potentially lowering average borrowing costs.
3. Remortgaging activity may increase as existing fixed deals mature and homeowners explore better deals in a shifting market.
In other words, even if asking prices rise modestly, the right mortgage strategy – including timing and product choice – remains a key factor in your overall affordability.
What Should Buyers Do Now?
If you’re thinking of making a move this year, consider these steps:
- Get an Agreement in Principle early: Locking this in shows sellers you’re serious and helps gauge affordability.
- Watch trends, not headlines: Price rises early in the year don’t always translate to sharp increases later.
- Consult a mortgage broker: Professional advice can help you match the best product to your goals without guesswork.
January’s price jump is an interesting early signal of renewed market activity. But for buyers, movers and remortgagers alike, understanding how pricing interacts with mortgage availability and product choice matters more than any single month’s data.
