Asking prices for homes across the UK have recorded their strongest rise for this time of year, signalling a tentative return of confidence to the housing market after months of uncertainty,

according to new data from property portal Rightmove.

Prices increased sharply over the Christmas and New Year period, marking a rebound from a late-autumn dip that followed speculation around Chancellor Rachel Reeves’ first budget. Rightmove’s latest house price index shows that sellers are once again testing higher price levels as the market enters the new year.

The improvement follows recent commentary from the Royal Institution of Chartered Surveyors (RICS), which said last week that buyer and seller sentiment had begun to stabilise after Reeves delivered her tax and spending statement on 26 November.

“It’s an encouraging start to the year to see sellers confident enough to list their homes at higher prices after several months of muted growth,” said Colleen Babcock, property expert at Rightmove. She cautioned, however, that the recovery remains modest. “Asking prices are only back to where they were in the summer of 2025, before budget rumours unsettled the market and dented confidence.”

Concerns ahead of the budget had weighed on activity as homeowners delayed listings amid fears of significant tax rises. While Reeves ultimately announced £26 billion in tax increases, most measures were postponed and income tax rates were left unchanged, easing pressure on household finances and helping to restore market stability.

Rightmove’s data shows that average asking prices for newly listed homes rose by 2.8% in the four weeks to 10 January, the largest monthly increase since 2015. This followed a 1.8% decline in the previous four-week period. On an annual basis, prices were up 0.5%, indicating subdued but positive growth.

The portal also reported that the number of homes available for sale is at its highest level for this time of year since 2014, suggesting that more sellers are returning to the market after holding back late last year.

While affordability pressures and mortgage costs remain key challenges, the latest figures point to a housing market that is beginning the year on firmer footing, supported by easing political uncertainty and renewed seller confidence.