2026-01-19 00:13:00
Summary:
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UK asking prices rise 2.8% m/m, biggest January jump on record
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Prices now 0.5% higher y/y after recent weakness
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Housing supply at highest seasonal level since 2014
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Confidence improves after budget uncertainty fades
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Affordability pressures still limit upside
UK asking prices recorded their strongest rise for this time of year on record, signalling a tentative rebound in seller confidence after months of uncertainty surrounding last year’s budget.
Property portal Rightmove said average asking prices for newly listed homes rose 2.8% month-on-month in the four weeks to January 10 — the largest increase for any month since 2015 — following a 1.8% decline in the previous period. Prices are now 0.5% higher than a year earlier, while housing supply has climbed to its highest level for this time of year since 2014.
The recovery follows a period of caution linked to speculation ahead of Chancellor Rachel Reeves’ November tax and spending statement, which unsettled buyers and sellers alike. While Reeves announced £26 billion in tax increases, most measures were deferred and income tax rates were left unchanged, easing fears of a sharper hit to household finances.
Rightmove said sellers are now returning to the market with greater confidence, encouraged by stabilising expectations and a more predictable policy outlook. The shift echoes recent survey evidence from the Royal Institution of Chartered Surveyors, which reported improving sentiment across the housing market.
However, Rightmove cautioned that the rebound remains modest. Asking prices have only returned to levels last seen in mid-2025, before budget speculation dented confidence. Elevated borrowing costs and stretched affordability continue to cap upside momentum, suggesting price growth is likely to remain subdued despite the strong seasonal start.
The data point to stabilising UK housing sentiment but suggest limited scope for sustained price acceleration while mortgage affordability remains tight.
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Separately,
Summary:
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Think tank urges UK government to end policy flip-flops
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Productivity rose 3.1% y/y in Q3 2025
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Housing, labour and trade reforms key to faster growth
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Brexit impact may be larger than official estimates
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Reforms could lift incomes by £2,000 a year
Britain’s government needs to abandon policy reversals and move decisively on structural reforms if it wants to capitalise on early signs of economic improvement, according to a report from the Resolution Foundation.
The think tank said the 18 months since Prime Minister Keir Starmer’s landslide election victory have been marked by frequent U-turns, tentative policy proposals and diluted reforms, limiting progress on boosting growth and productivity.
While headline economic performance has remained weak, the Resolution Foundation noted emerging evidence that productivity may be turning a corner. Adjusting for past under-recording of employment, productivity rose 3.1% year-on-year in the third quarter of 2025, offering a rare bright spot after years of stagnation.
To sustain that momentum, the report urged bolder action on housing, labour markets and trade. Measures such as easing planning restrictions to meet urban housing targets, deeper regulatory alignment with the European Union, and policies to draw more young and older workers into employment could lift household incomes by around £2,000 a year, it said.
That improvement would also generate sufficient tax revenue to fund a 25% increase in NHS spending, the think tank estimated.
Britain’s economy has underperformed peers for much of the past two decades, with GDP per capita slipping further behind other major European countries since the pandemic. The Resolution Foundation said the drag from Brexit could be close to double the 4% hit assumed by official forecasters, compounding the effects of COVID and the energy price shock.
The report reinforces concerns that without structural reform, any UK productivity rebound may prove short-lived, limiting medium-term growth and fiscal headroom.
