EXPRESS INDEX - HOUSING MARKET UPDATE - January 2026

There are many UK housing market indexes released every month and we are attempting to provide the ultimate, comprehensive overview to the very fragmented reports available.

UK HOUSING MARKET SNAPSHOT

Average House Price
(Price Paid)

£271,000

Monthly Change 0.3%

Annual Change 2.5%

5 Year Change 18.64%

Source: HM Land Registry

Average House Price
(Asking Price)

£368,031

Monthly Change 2.8%

Annual Change 0.5%

5 Year Change 16.07%

Source: Rightmove

Number of Sales Completed

54,359

Monthly Change 12.7%

Annual Change -29.5%

5 Year Change -35.73%

Source: HM Land Registry

Sales Agreed

Monthly Change 0.3%

Source: Rightmove

Total Available Properties

677,885

Available Properties Change

Monthly Change 0%

Average Time on Market

189 days

Source: Home

Average Time to Sell

76 days

Source: Rightmove

Price Reductions

0.5% properties price reduced last month

Source: Home

Mortgage Approvals

Annual Change -2.1%

Source: Bank of England

POSTCODE DISTRICT DATA
  • For the ‘Price Paid Data’ we use the most recent HM Land Registry data for home sales in England and Wales between September 2023 - March 2024.
  • We use a rolling 6 month snapshot of home sales in each localised Postcode District to reduce potential volatility.
  • In order to reduce the effect of outliers. We calculate average Postcode District prices using the median rather than the mean. This creates a more realistic representation of local transactions.
  • Traffic light system key:
    Green = Yoy > 2%
    br> Amber = Yoy >= -2% and Yoy <= 2%
    Red = Yoy < -2%
Price Paid Data
Asking Price Data
REGIONAL HOUSE PRICES
22
333
444
NATIONAL HOUSING MARKET COMMENTARY

"The average price of homes newly listed on the market for sale rises this month by 2.8% (+£9,893) to £368,031. This is the largest increase in the month of January in Rightmove’s 25 years of House Price Index reporting. It is also the largest month-on-month price increase of any month since June 2015. After underperforming against historical averages in eight out of twelve months during 2025 particularly at the end of the year, national average property prices are now 0.5% higher than at this time last year. January’s recovery brings average asking prices close to where they were in August 2025, as market sentiment rebounds from the rumours and uncertainty around the November Budget. However, price trends in regions and local markets across Great Britain are more volatile, and while most regions rise in price this January, the East Midlands and Scotland buck the trend with price falls. A recovery in property prices is a good sign for the health of the market at the start of the year, though sellers mustn’t get carried away with new year enthusiasm. The number of available homes on the market, and therefore the number of other sellers to compete with, is still at its highest level for this time of year since 2014. Additionally, a third of homes already on the market are having their asking price reduced. Therefore, sellers need to strike a balance between price ambition and market realism when setting their asking price to give themselves the best chance of finding a buyer and getting their home sold."

"The December 2025 RICS UK Residential Market Survey reveals that market activity remains subdued, with both buyer demand and agreed sales continuing to register negative readings. However, there are encouraging signs of a shift in sentiment, as respondents express greater optimism around the outlook for sales, both over the near-term and for the year ahead. This improved confidence appears to be underpinned by expectations of further monetary policy easing, alongside the removal of Budget-related uncertainty which had weighed on the market in recent months."

REGIONAL HOUSING MARKET COMMENTARY

"House prices continued to face modest downward pressure in December, with the latest net balance remaining unchanged from November at -14% (although this is slightly less negative than the recent low of -19% seen in October). While this measure suggests house prices are still ever so slightly in decline at the national level, the trend does appear to now be stabilising. Continuing to display a weaker picture than the national average, however, respondents in London (net balance -42%) and the South East (-32%) continue to see a more pronounced decline in prices relative to the headline readings. At the other end of the scale, prices across Scotland and Northern Ireland continue to move higher."

"House price inflation follows a clear north-south divide. The Nort West of England registered a 3.5% increase in average prices over 2025, followed by a 2.9% increase in house prices across Scotland. Northern Ireland prices were 7.6% higher, coming off a low base."

HOUSE PRICE PREDICTIONS FOR 2025

Tim Bannister, Property Expert at Rightmove: 4% rise

“More people choosing to make their move in 2025, teamed with lower mortgage rates, could push house prices up by 4% over the course of 2025… The big picture of market activity remains positive… which sets us up for what we predict will be a stronger 2025 in both prices and number of homes sold.”

Amanda Bryden, Head of Halifax Mortgages: 0% to +3% rise

“We expect modest house price growth in 2025, likely a little lower than this year at up to +3%… While further cuts to Bank Rate are still on the cards, the pace looks likely to be more gradual than previously anticipated… buyer demand should continue to hold up well.”

Richard Donnell, Executive Director at Zoopla: 2.5% rise

“The housing market has been resilient… Higher income growth and lower mortgage rates have helped reset housing affordability… We expect this to continue over 2025.”

Lucian Cook, Head of Residential Research at Savills: 1% rise

“Interest rates have fallen as expected, giving buyers a bit more financial capacity than they had a year ago… Greater geopolitical uncertainty… has made predicting the precise path of further cuts more challenging.”

Nick Barnes, Head of Research at Chestertons: 3.4% rise

“Chestertons forecasts that property prices will rise by 3.4% across the UK and 3% in London in 2025, supported by lower mortgage costs, modest but consistent growth for the UK economy and inflation staying around the Bank of England’s 2% target.”

HOUSE PRICE PREDICTIONS
IMPORTANT LIABILITY STATEMENT

An ExprEstimate is simply an estimation of what your property could be worth in current market conditions. This is calculated using an automated computerised system. We use a number of publicly available data sources to help calculate our estimations, maps, tables and other content. This data may be inaccurate or incomplete at times and therefore must not be relied upon. Our valuation estimations, maps and tables are provided to you for personal use, general interest and to provide homeowners with a useful starting point when trying to assess their property’s current value and the UK property market in general. These estimates, maps, tables and any other content should not be relied upon for any type of commercial transaction. We strongly recommend that you seek a professional valuation from a qualified surveyor / qualified professional before any property sale, purchase, mortgage or related purposes. We shall not be liable for any losses you or anyone else suffers as a result of relying on the valuations, maps, tables and any other content. This includes not being liable for any loss of profit, loss of bargain, loss of capital through over-payment or under-sale or for any indirect, special or consequential loss. We cannot and do not guarantee that the Service will be constantly available or error-free. Also, our liability to you is limited to £100. WE DO NOT EXCLUDE OR LIMIT OUR LIABILITY FOR ANYTHING WE ARE NOT ALLOWED TO AND YOUR STATUTORY RIGHTS AS A CONSUMER ARE NOT AFFECTED BY ANY OF THESE TERMS AND CONDITIONS.