January 2026 Property Market Update: Record Price Growth and Renewed Confidence

The UK property market has started 2026 on a notably positive footing, with new data showing a sharp rise in asking prices, stronger buyer activity and improving affordability.

According to the latest House Price Index, January has delivered the largest monthly price increase ever recorded for this time of year, signalling renewed confidence after a more cautious end to 2025.

A record start to the year

Nationally, the average asking price of homes coming to market rose by 2.8% in January, an increase of nearly £10,000, taking the average asking price to £368,031. Property prices are now 0.5% higher than this time last year, reversing the softer conditions seen towards the end of 2025.

This uplift has been supported by a strong return of buyers to the market following the Christmas period. Buyer enquiries increased by 57% in the two weeks after Christmas, while the number of newly listed homes rose by 81%. Rightmove also reported its busiest Boxing Day ever, as many buyers began their property search early for 2026.

At the same time, mortgage affordability has improved. The average two-year fixed mortgage rate is now 4.29%, its lowest level since before the 2022 mini-Budget. For many buyers, this equates to savings of over £100 per monthcompared to this time last year.

What does this mean locally?

While the national headlines are encouraging, local market conditions remain crucial.

“We’re seeing a noticeable uplift in confidence across Shropshire and Mid Wales,” says Mark Davies, Sales Director at Nock Deighton. “Buyers are active and motivated, but with more homes coming to market, sellers need to be realistic on price and presentation. Homes that are launched correctly from day one are the ones attracting the strongest interest.”

Despite rising prices, the number of homes available for sale is currently at its highest level for this time of year since 2014. Around one in three properties already on the market have reduced their asking price, highlighting the importance of accurate pricing and professional marketing from the outset.

Looking ahead to Spring 2026

As we move closer to the traditionally busy Spring selling season, both buyers and sellers have opportunities.

For sellers, early movers may benefit from strong buyer demand before competition increases further. For buyers, improved affordability and greater choice are creating a more balanced and considered market.

Whether you are thinking of selling, buying, or simply want to understand how current market conditions affect your property, expert local advice can make all the difference.

If you would like tailored guidance on the value of your home or the opportunities available in today’s market, please get in touch with your local Nock Deighton office.