The average price of homes listed for sale in January rose by 2.8% from December to reach £368,031, marking the largest ever increase for the month since Rightmove began recording the data 25 years ago.

The property portal found that it was also the highest rise for any month since 2015.

Asking prices are now 0.5% higher than a year ago, with agents reporting that confidence is returning following the November Budget.

Rightmove says there was a sharp rise in activity over the festive period, with buyer demand increasing by 57% in the two weeks after Christmas compared with the two weeks prior, while the number of newly-listed homes jumped by 81%.

Rightmove also recorded its busiest-ever Boxing Day for visits to the platform, as buyers began their search for a 2026 move.

However, sellers are being urged to remain realistic on pricing.

With the number of property listings at the highest level for this time of year since 2014, a third of homes already on the market have had their price reduced and buyers have a lot of choice.

Rightmove found that local market conditions remain volatile, despite the strong headline figures.

While most regions saw prices rise in January, the East Midlands and Scotland recorded with modest falls.

Mortgage affordability has also improved, with Rightmove’s daily mortgage tracker showing the average two-year fixed rate has fallen to 4.29%, its lowest level since before the September 2022 mini-Budget.

At this time last year, the equivalent rate stood at 5.03%.

The cheapest two-year fixed rate available to buyers with larger deposits is now 3.47%.

Rightmove estimates that a buyer purchasing at the national average asking price with a 20% deposit would save more than £100 a month on their mortgage compared with a year ago.

Rightmove property expert Colleen Babcock says: “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 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.”

“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 twelve-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.”

Chase Buchanan estate agents director Myles Moloney says: “The market has been very busy, and the types of homes we’re seeing become available for sale are perfectly positioned to take advantage of what buyers are looking for right now.”

“Strong schooling is a huge driver in our area and growing families want a large open plan kitchen and living space.”

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