Latest: January property market report

New year and a new-look property market ahead. January picked up where December left of, with a raft of announcements that will shape the industry’s future. Here’s what you may have missed. 

The Scottish Government showed it was inspired by England in announcing plans to introduce a mansion tax. As part of its 2026-27 Budget, Scotland’s most expensive properties will be re-valued and extra revenue generated by introducing two new council tax bands from April 2028. Homes worth more than £1 million will be impacted.

Gas gets the green light

The English Government continued its tact of going back on its pledges by scrapping the phasing out of gas boilers. While different rules will apply to brand new homes, owners of existing properties can continue to heat homes using gas. To help achieve carbon neutral status, the Government’s Warm Homes Plan will instead invest £15 billion in clean heating upgrades.

Revised EPC deadline for landlords

Another U-turn in January pertained to minimum energy efficiency standards (MEES) in privately rented properties. The Government has backtracked on its requirement for new tenancies to require an Energy Performance Certificate (EPC) rating of at least a C in 2028. This has been pushed back to 2030, in line with when existing tenancies need to meet the C standard.

An additional change to MEES announced at the same time related to the cost of making energy upgrades. Previously, the Government set a spending cap of £15,000 – the upper cost it felt landlords must spend on improvements. This cap has been reduced to £10,000, limiting a landlord’s required investment.

The Government didn’t stop there. The Prime Minister used the end of January to set out his intentions for further leasehold reforms in England and Wales. The headline announcement concerned ground rent. This will be capped for all existing leaseholders at £250, reducing to a ‘peppercorn’ amount after 40 years.

The reform is part of the just published Commonhold and Leasehold Reform Bill. In it forfeiture, which sees some leaseholders lose their homes and any equity over modest debts, will be banned. A refreshed commonhold model is also promised, making it easier for existing leaseholders to convert to commonhold. 

Many of you will be wondering about average house prices and rental values in 2026. Early indications from Rightmove are positive. The average asking price in January surged – 2.8% higher than December 2025. New-to-market properties are being advertised at an average of £368,031

Post Christmas boom 

The portal also saw its record Boxing Day bounce come to fruition in January. In fact, it was the busiest Boxing Day on record. Buyer enquiries increased a whopping 67% in the two weeks following Christmas, when compared to the previous two weeks. 

Buyers in January found there was a greater choice of homes for sale too. Rightmove’s statistics showed new property listings across its site substantially increased after the festive period, rising by 81%. The number of homes available for sale at the end of January was the highest it’s been at this time of year since 2014.

New tenancies costing less

Rental values started the new year at slightly lower levels. The latest rental index from HomeLet revealed the UK’s average monthly rent at the end of December 2025 was £1,317. This was 1.5% lower than the value noted in November. 

Rental values for new tenancies fell sharpest in London. A drop of -3.2% leaves the capital’s average monthly rent at £2,129. Wales was the only region where rents actually rose – inching up +0.3% to a monthly average of £908. Rents in Scotland dipped -0.4% to a new monthly average of £960.

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