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flag UK home prices hit a record £368,031 in January 2026, up 2.8%, fueled by lower mortgage rates and stronger confidence.

flag UK home prices rose 2.8% in January 2026, reaching a record high for the month at £368,031, according to Rightmove, driven by improved market confidence and lower mortgage rates. flag The increase marks the largest January rise in 25 years and follows a period of uncertainty after the November 2025 budget. flag Despite rising demand and a record number of homes for sale—highest since 2014—many listings have seen price reductions, prompting caution for sellers. flag Mortgage rates have declined, with the average two-year rate at 4.29%, down from 5.03% a year earlier, boosting affordability. flag Meanwhile, rental prices fell 0.7% in 2025, the first annual drop since records began, due to increased first-time buyer activity and economic weakness.

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