Average UK house price records biggest increase since June 2015
The average price tag of a house rose by 2.8 per cent in January, the biggest increase since June 2015, according to Rightmove.
The property website said the average sales price rose by £9,893 in January to £368,031, the highest for the month in 25 years of house price surveys.
Rightmove said the recovery in January had brought average selling prices closer to August 2025 levels as market sentiment rebounded from uncertainty over the autumn budget.
However, the website said sellers should not get carried away with New Year’s enthusiasm, adding that the number of existing homes on the market and the number of other sellers who could compete are at the highest level since 2014 at this time of year.
Rightmove property expert Colleen Babcock said: “After several months of quiet price growth last year, coinciding with more potential buyers returning to the market, it is an encouraging start to the year to see sellers feeling confident enough to list their homes at higher prices.
“Some buyers, especially first-time buyers, will not want to see prices rise too quickly. However, it was only in the summer of 2025 that asking prices returned to the levels they were before budget rumors began to emerge, unsettling the market and damaging confidence.”
“This new year of seller confidence is a good sign, but sellers would do well to listen to their agents’ guidance when setting their prices and avoid being overly optimistic. “With the number of homes for sale at this time of year the highest in 12 years, buyers have plenty of choice and a third of properties already on the market for sale have seen price reductions.
“This means sellers need to be realistic and balance the price they want to achieve with the likelihood of finding a buyer at that price in the local market.”
He added: “A record number of visits to Rightmove on Boxing Day and a huge jump in activity following a quieter festive period set the tone for a positive start to the year.
“Many buyers have seen their affordability improve as average wage increases outpace average property prices.”
Many mortgage lenders have cut interest rates in recent weeks to support home buyers.
Matt Smith, a mortgage expert at Rightmove, said mortgage rates “are likely to remain stable over the next few months, with only minor increases or decreases”.
He added: “Those who are waiting for cheaper mortgage rates before making the move may now be seeing some of the best deals that will be around for a while.”
Myles Moloney, director of Chase Buchanan Estate Agents in London, said: “Homes that are well presented, reasonably priced and designed to suit modern family living are those that attract the highest level of interest and attention.”
Meanwhile, a separate report from property firm Hamptons found that newly agreed rents across England have fallen by an average of 0.7 per cent in 2025; This marks the first time rents have fallen for a full calendar year since records began in 2011.
The average tenant moving into a house paid £1,371 per month, or £10 per month less than the previous year, the Hamptons said.
Digging deeper into the overall average figure, some parts of Britain have seen year-on-year declines in new rental prices, while others have seen increases.
Aneisha Beveridge, head of research for the Hamptons, said: “On paper, 2025 looked like a good year for renters.
“Rents on new leases ended 2025 lower than they started, and tenants had more choice than before. However, falling rents were driven by strong first-time buyer numbers and wider economic weakness rather than an improvement in tenant affordability.
“Fewer renters are taking their first steps into the rental market; many are staying at home longer and are reluctant to incur the cost of renting a place of their own.”
Average monthly rent in December 2025
The Hamptons rental index uses data from Connells Group to track changes in the cost of renting and is based on achieved rents rather than advertised rents.
Here’s the average monthly rent and annual change for a new rental in December 2025, according to the Hamptons:
- London, £2,294, minus 2.7 per cent
- East of England, £1,255, 0.5 percent
- South East, £1,456, minus 1.0 per cent
- South West, £1,262, 0.7 per cent
- East Midlands, £982, minus 0.2 per cent
- West Midlands, £1,085, 2.1 per cent
- North East, £851, 2.0 per cent
- North West, £1,034, 2.5 per cent
- Yorkshire and Humber, £923, minus 1.4 per cent
- Wales, £870, minus 0.8 per cent
- Scotland, £1,030, 0.5 percent
