Property market ‘has bounced back fighting fit following the festive break’

House prices increased by 0.3% between December 2025 and January 2026.

This reversed the -0.4% monthly decline seen between November and December of last year.

Annual growth sat at 1% in January 2026, with this annual rate of growth increasing from 0.6% in December 2025.

The average UK house price now stands at £270,873.

Verona Frankish, CEO of Yopa, said, “It’s back to business for the UK property market with the seasonal slowdown in house prices seen during December now a distant memory.

“The housing market has wanted no time in finding its stride again and we’re seeing both buyers and sellers engaging with a far greater level of confidence.

“This uplift in market momentum is being driven by improving affordability, with borrowing costs continuing to ease and, as a result, 2026 is already shaping up to be a far busier year for bricks and mortar.”

Director of Benham and Reeves, Marc von Grundherr, added, “The property market has bounced back fighting fit following the festive break, with the reduction in house prices seen during December giving way to positive growth in 2026.

“This suggests that the nation’s homebuyers and sellers have wasted no time in putting their plans into motion, driven by improving affordability and the recent boost of a base rate cut.

“It’s already shaping up to be a far stronger year for the market and one that should see a reduction in selling times, improvements to the prices being achieved and the overall volume of transactions taking place.”

Damien Jefferies, Founder of Jefferies London, said, “The UK housing market has started the year with real intent, leaving the traditional Christmas slowdown firmly in the rear-view mirror. Buyer confidence has returned quickly, activity levels are rising, and momentum is building across the country.

“This renewed energy is being supported by improving affordability and falling borrowing costs, giving movers greater confidence to proceed with their plans.

“In London in particular, we are seeing a clear uplift in enquiries, viewings and agreed offers, as buyers who delayed decisions last year return to the market. With conditions continuing to improve, 2026 is already shaping up to be a far more active and decisive year for the capital.”