Are you watching house prices and rents move around and thinking, “Should I buy now, or wait?”
This January UK Property Market Analysis pulls the latest headline signals into one place, so you can make a calmer decision.
Rightmove had its busiest Boxing Day ever, and buyer enquiries rose by 67% in the five days after Christmas.
I’ll walk you through what that activity means for asking prices, rental yields, affordability, and the policy changes that can affect your next move.
January UK Property Market Analysis
This January UK Property Market Analysis shows asking prices edged higher, and buyer activity rose sharply after Rightmove’s Boxing Day spike.
You can treat January as a “high intent” month, lots of people come back from the holidays ready to view, offer, and list.
- If you’re buying: expect faster competition on well-priced homes, but more choice than you’ve seen for years.
- If you’re selling: strong clicks do not always equal strong offers, pricing still needs discipline.
- If you’re investing: yields look resilient, but policy and running costs now matter as much as purchase price.
Rightmove’s Busy Boxing Day
If you ever wondered whether the “Boxing Day bounce” is real, this year made it hard to ignore.
Rightmove reports Boxing Day was its busiest ever day for visits, with traffic jumping 93% compared with Christmas Day.
That surge matters because it tends to bring three groups back at once, serious buyers, reluctant sellers, and landlords scanning the numbers.
- Buyers: set up instant alerts for your target streets and property types, then book viewings within 24 to 48 hours.
- Sellers: prepare your paperwork early (title, lease details, service charge info), so you can accept an offer without delays.
- Landlords: use January to review void risk, EPC plans, and whether your rent still sits in the realistic middle of your local market.
Increase in Buyer Inquiries and Property Listings
Traffic spiked after Christmas, with clear signs of renewed buyer interest and a rush of fresh stock.
The key is to use the spike wisely, it can create momentum, but it can also tempt people into overpaying (or overpricing).
| Point | Summary |
|---|---|
| Buyer enquiries | In the five days after Christmas, buyer enquiries rose by 67%, compared with the five days before. |
| New listings | New property listings jumped by 143% in the same five day post-Christmas window, compared with the prior five days. |
| Boxing Day traffic | Boxing Day visits jumped 93% compared with Christmas Day (as shared by Rightmove in its January 2026 update). |
| Market impact | Higher enquiries plus a jump in listings creates more choice for buyers, and more competition for sellers. |
| Short term outlook | The immediate post-Christmas spike often carries into January as people act on new listings and book viewings quickly. |
Practical move: if you’re buying, decide your “walk away” number before you view, so excitement does not set your budget for you.
Availability of Homes
Choice is the story buyers should focus on, not just the headline asking price jump.
Rightmove says the number of available homes for sale is the highest it has been at this time of year since 2014.
Even better for buyers, around a third of homes currently for sale have already had a price reduction.
Quick negotiation reality check: more available homes plus frequent price reductions usually means you can negotiate, especially if a listing has sat for a few weeks.
- Use listing age: ask the agent when it launched, and whether there have been any previous offers.
- Ask what “good” looks like: find out the seller’s preferred completion date, not just the price.
- Offer strength: a cleaner offer (deposit ready, solicitor lined up, flexible dates) can beat a slightly higher number.
- Watch relisted homes: if a property disappears and returns, ask why the last deal fell through.
Average Asking Price and Rental Yields
Here are the headline figures for asking prices and rental yields for January 2026, plus the context that helps you act on them.
| Point | Summary |
|---|---|
| Average asking price | £368,031 was the average asking price in January 2026 (per Rightmove’s January 2026 House Price Index). |
| Monthly change | Prices rose by 2.8% from December 2025 (+£9,893). |
| Yearly change | Asking prices climbed 0.5% compared with January 2025. |
| Pricing milestone | This was Rightmove’s largest January price jump on record, and the biggest rise for any month since June 2015. |
| Rental yield, England and Wales | Fleet Mortgages’ Rental Barometer put the England and Wales average yield at 7.7% (Q4 2025 figures published January 2026). |
If you’re trying to time your move, zoom out to affordability, not just asking prices.
- Mortgage rate signal: the Bank of England reported the effective rate on newly drawn mortgages eased to 4.15% in December 2025.
- Demand signal: net mortgage approvals for house purchase fell to 61,000 in December 2025, which can point to a market that is active, but still price-sensitive.
- Sales volumes: UK residential transactions were estimated at 100,440 (seasonally adjusted) in December 2025, a useful sign that the market is still moving. Its always best to strengthen your position by making sure your house is ready for sale
Rental Market Trends
If you’re a tenant, the key question is simple, are rents still running away from your wages?
If you’re a landlord, the question flips, can you keep yields healthy without pushing rent beyond what your local market will tolerate?
A helpful signal is demand, Zoopla reported that in January 2026 agents received an average of 5.8 rental enquiries per listing, down 20% year on year.
Rental Yields and Values
Yields are still strongest where prices stay relatively low and tenant demand stays steady.
| Point | Summary |
|---|---|
| England and Wales average yield | 7.7% (Fleet Mortgages Q4 2025 Rental Barometer, published January 2026). |
| Top yields | North East 9.6%, Yorkshire and Humberside 8.3%, North West 8.2%, West Midlands 8.1%, East Midlands 8.0%. |
| What that means in practice | Higher-yield regions can give you more breathing room on interest rates and repairs, but you still need to stress-test voids and maintenance. |
| Affordability check | Run your numbers using a realistic “all-in” monthly cost (mortgage, insurance, safety certificates, maintenance reserve), not just the headline rent. |
- Landlord tip: if you rely on rent to cover the mortgage, plan for at least one month of void per year in your cash buffer.
- Tenant tip: if listings are sitting longer, ask for small wins (earlier move-in date, minor fixes, a longer fixed term) rather than expecting a huge discount.
Government Revisions on Minimum Energy Efficiency Standards
Energy rules can change what a “good” buy-to-let looks like, especially if your margin is tight.
In its 2025 update on improving the energy performance of privately rented homes, the Government confirmed a single compliance date of 1 October 2030 for the higher standard (equivalent to EPC C) in England and Wales, with a £10,000 cost cap and exemptions valid for 10 years.
- Start with what you have: pull the current EPC and list the cheapest improvements first (loft insulation and draught-proofing often come up early).
- Plan around tenancy dates: schedule the messier jobs between tenancies if possible.
- Keep evidence: store quotes, invoices, and photos of works, you may need them for exemptions or future sale questions.
- Do a comfort check: upgrades that cut bills can also reduce churn, because tenants stay put when a home feels warm and predictable.
Abandonment of Gas Boiler Phase-Out
Boilers are still a major practical decision for owners, because replacement work can be disruptive and expensive.
Recent policy announcements suggest there is no UK-wide requirement to remove an existing gas boiler, and there is no blanket ban on the sale of gas boilers in 2035.
- If your boiler is ageing: price up two paths, a like-for-like replacement versus a longer-term upgrade (insulation first, then low-carbon heating).
- If you’re considering a heat pump: check insulation, radiator sizing, and outdoor unit placement early, these details decide comfort more than the brochure.
- If you’re renting the property out: avoid last-minute failures by servicing on a fixed annual schedule and keeping a replacement fund.
New Leasehold Reforms
Leasehold is one of those areas where a small line in the paperwork can change your resale value and your stress levels.
The Government published the Commonhold and Leasehold Reform Bill for England and Wales. It proposes capping existing ground rents at £250 a year, reducing to a peppercorn after 40 years, and making it simpler for leaseholders to move towards commonhold.
- Buyer checklist: ask your solicitor to flag ground rent review clauses (especially doubling patterns) and any permission fees.
- Budget beyond the mortgage: treat service charges like a second monthly payment and ask for the last 3 years of accounts.
- If you already own: check whether your ground rent level has made the flat harder to sell, and keep an eye on implementation timelines.
- Flat owners: if commonhold becomes more workable, it could change how buyers value “control” over the building long-term.
Scottish Government’s Property Tax Reforms
Scotland is taking a targeted approach to higher-value homes, and it’s worth planning early if you own, or want to buy, at the top end.
The Scottish Budget 2026 to 2027 sets out two new council tax bands from 1 April 2028 for the most expensive homes: Band I for properties valued between £1 million and £2 million, and Band J for homes valued above £2 million.
- If you’re buying near £1 million: build a buffer in case your valuation lands just over the threshold when the new bands arrive.
- If you’re an investor: model tax and running costs alongside yield, high-value property can be more sensitive to policy headlines.
- If you hold second homes: keep an eye on local council tax premiums for second and long-term empty homes, as these can shift the yearly cost quickly.
Conclusion
January UK Property Market Analysis points to a lively start to the year, with Rightmove’s Boxing Day surge feeding into higher asking prices and busy viewing diaries.
At the same time, buyers have more choice than they’ve had at this point in the year since 2014, and price reductions are common enough to support sensible negotiation.
If you focus on affordability, realistic sales volumes, and the policy changes that affect running costs, you’ll make a stronger decision than if you chase headlines alone.
Check out our properties for sale and properties to let, to see if any of them suit your budget and location.
