UK
house prices bounce back in January and are predicted to improve during 2026,
according to the UK’s top mortgage lender
Nationwide
says the average price of UK homes rose by 0.3% last month after a surprise
fall at the end of 2025 in the weeks after Rachel Reeves’s budget and the
outlook for 2026 remains optimistic as house prices are predicted to improve
further throughout the year.
Record-Breaking
January for Asking Prices
Asking
prices are up 2.8% month-on-month in January 2026 – the largest increase seen
in the month of January on record, according to Rightmove’s latest house price
data.
Economists
predict that 2026 will be a year of growth in the UK’s property market. As
mortgage rates fall and uncertainty around the budget begins to fade, Nationwide
has forecast that prices will rise by 2%-4% this year. The average two-year
fixed mortgage rate* in January 2026 is 4.29%, compared with 5.03% at this time
last year.
A Prime Time
to Move
With buyer
demand having increased 57% in the two weeks after Christmas compared with the
two weeks before, this recent flurry of activity suggests that buyers and
sellers alike are keen to push on in early 2026 and secure their next step now,
rather than waiting for the spring market.
If you have
been thinking of moving and have a house to sell, with asking prices increasing,
mortgage rates improving and demand high so early into the year, now is the
perfect time to get more for your money and move into your dream home more
swiftly.
View the
available homes at our developments in Surrey, Berkshire and Buckinghamshire.
*Mortgage
rate data is provided by Podium and is an average based on 95% of the mortgage
market. All rates are based on products with a circa £999 fee.
Source: The Guardian
article published 2nd February 2026 and Rightmove article published
19th January 2026,