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🌟 UK Property Market Shows Strong Momentum – Big Wins for Buyers, Sellers & Landlords!
The UK property market has kicked off 2026 on a surprisingly strong note, with fresh data front Rightmove pointing to rising confidence across sales, mortgages and rentals. From record-breaking house price growth to improving mortgage deals and stronger rental returns, there’s plenty of positive news for homeowners, movers and investors alike. Here’s a look at the key trends shaping the market right now.
📈 House Prices Jump Sharply with Record January Rise
New figures from Rightmove reveal that average UK asking prices jumped by 2.8% in January — the largest month-on-month increase for this time of year in the past 25 years. This marks a record January rise and suggests buyer confidence has returned quickly following the uncertainty seen towards the end of 2025.
The data indicates that motivated buyers are re-entering the market early this year, and that well-priced homes are attracting strong interest.
✨ What this means:
For sellers, it’s an encouraging sign that demand is there and that launching your property at the right price could lead to strong results. For buyers, it highlights the importance of being prepared and ready to move when the right home comes along.
💷 Mortgage Deals Improving as Lenders Cut Rates
There’s more good news on the finance front. Several major UK lenders, including HSBC, Nationwide, NatWest, Barclays and Halifax, have recently reduced mortgage rates following base rate cuts and improving market conditions.
Some fixed-rate mortgage deals are now among the most competitive seen in years, helping to improve affordability and boost confidence among buyers and home movers.
🏡 Why it matters:
Lower mortgage rates can significantly reduce monthly payments, making it easier for buyers to take their next step — whether that’s getting onto the property ladder, upsizing, or securing a better deal when remortgaging.
🏘️ Rental Yields Continue to Rise Across the UK
Landlords are also seeing positive momentum. Average rental yields across the UK are now approaching 8%, with particularly strong performance in many northern regions.
This growth reflects continued tenant demand and improving income potential for buy-to-let investors, helping to restore confidence in the rental market after a challenging period.
👑 Key takeaway:
Stronger yields make property investment more attractive and support longer-term stability in the rental sector — good news for landlords and tenants alike.
🏠 What Does This Mean for You?
✔ For Sellers: Rising asking prices and renewed demand could help you achieve a great result, especially if your home is well presented and accurately priced.
✔ For Buyers: More competitive mortgage deals may improve affordability and open up new options.
✔ For Landlords: Healthy rental yields continue to offer strong income potential in high-demand areas.
📣 In Summary
The early signs for 2026 are encouraging:
• 📌 Record January house price growth signals renewed buyer confidence
• 💸 Mortgage rates are easing as lenders compete
• 💼 Rental yields are strengthening nationwide
Whether you’re planning a move, considering an investment, or just keeping an eye on the market, there’s plenty of reason to feel optimistic.
✨ If you would like tailored advice about buying, selling or investing locally, get in touch with your nearest Hannells branch or arrange a free, no-obligation property valuation today.
Click HERE to book your free, no-obligation valuation.
Get in touch with your local branch of Hannells by clicking HERE
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