Kings Estate Agents - January 2026 Property Market Update
Record Asking Price Growth & Renewed Confidence Entering the New Year.
As we kicked off 2026, the UK housing market saw a notable resurgence of activity and confidence, with January delivering a strong start to the year — and there are positive signals for buyers and sellers right here in Hertfordshire.
📈 Strong New Year Bounce in Asking Prices. According to recent data from Rightmove, the average asking price for homes in the UK rose to around £368,031 in January, marking a 2.8 % month-on-month increase — the largest January rise on record and the biggest comparable jump since June 2015. That indicates a strong return of momentum after the usual winter lull. This uplift followed several weeks of heightened buyer interest and increased listing activity over the festive period, suggesting many buyers and sellers are looking to capitalise early in the year.
🧠 What Broader Market Indicators Show Digging deeper into January market data reveals a mixed but generally improving picture: House price growth picked up modestly year-on-year, with some indices reporting around 1 % annual growth, and average UK prices passing £300,000 for the first time in official data — a milestone for the market. Buyer demand and new listings increased significantly in the weeks after Christmas — helping to fuel both asking price increases and more active competition between buyers. Survey measures showed the house price balance and buyer enquiry indicators improving compared with late 2025, though overall activity still remained subdued relative to pre-pandemic levels. That suggests the recovery is happening — but at a cautious pace.
💡 What This Means for Hertfordshire Buyers & Sellers
🔹 Sellers The early 2026 data suggests that confidence is returning to the market. Properties that are well-presented and appropriately priced are attracting attention and achieving healthy asking price improvements. With more homes being listed after the holiday period, buyers have increased choice — but that also means positioning your property smartly is key to standing out.
🔹 Buyers For those looking to move, the boost in supply driven by sellers entering the market can translate into more options and negotiating opportunities. Mortgage rates have also eased compared with recent years, helping affordability — though headwinds around local economic conditions and cost of living persist. England-wide affordability trends are improving, particularly for first-time buyers.
🔹 Potters Bar and Hatfield remain highly desirable locations for commuters, families and investors alike, with strong local schools, excellent transport links and vibrant communities continuing to support steady demand. While some buyers may feel seasonal market growth early in the year, practical timing and realistic pricing will have a big impact on achieving great results.
📊 Outlook: A Cautiously Positive Start to 2026 Market commentators are generally optimistic for modest growth through 2026, with price forecasts suggesting modest increases as mortgage rates remain relatively stable and buyer confidence grows post-Budget uncertainties. However, it’s worth noting that regional variations remain significant — London and the South East can behave differently from Northern and Midlands markets — and local conditions in Hertfordshire may diverge from broader national averages. Thinking about making a move this year? Whether you’re considering selling, buying, or investing in Hertfordshire in 2026, now is a great time to access professional advice.
Get in touch with our team for personalised market insight, tailored valuations and expert guidance — let’s make your next property decision a confident one.