The January 2026 Bounce: A Record Surge in Market Activity

The UK housing market has defied the usual mid-winter lull, entering 2026 with an unprecedented momentum. Average asking prices have climbed by 2.8% this January alone, marking the strongest start to a year on record.

This surge is largely a reaction to the Bank of England’s decision to cut the base rate to 3.75% in late December. This move has acted as a green light for many who remained on the sidelines throughout last year. Buyer demand has spiked by 57% compared to the same period in 2025, as movers rush to secure mortgage products that are now at their most competitive levels since 2022. For those looking to move, the current landscape offers a rare combination of increased inventory and more favorable lending terms.