Largest ever January price jump, as market sentiment rebounds after the Budget.
The average price of homes coming to the market for sale rises in January to £368,031, a 2.8% increase from December (+£9,893). This is the largest ever price increase seen in the month of January, and the largest of any month since June 2015.
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Property market news
The Bristol property market has entered the new year with renewed momentum, reflecting both national trends and a noticeable uplift in activity across all our offices.
January has seen the average asking price of homes coming to market rise to £368,031, a 2.8% increase on December - the largest January jump on record and the biggest monthly rise since June 2015. (Rightmove)
National average prices now sit 0.5% higher than this time last year, signalling a rebound in confidence following the post‑Budget slowdown.
Prices
Bristol overview
Over the last 12 months the average sales price in Bristol was £372,065.
The total value of sales was £1,795,142,040. 33% of sales in the past 12 months were flats, achieving an average sales price of £279,517.
Houses achieved an average price of £427,179. The highest value recorded by the Land Registry over the past 12 months was £1,250,000 for a flat and £4,800,000 for a house.
Demand
Buyer demand remained subdued through the end of 2025 but shows early signs of stabilisation as the market enters 2026.
Zoopla’s early‑January reporting shows a strong rebound in buyer demand, broadly in line with 2024 activity, though still 10% below the unusually high levels seen at the start of 2025. Demand in early 2026 remains well above 2023 and pre‑pandemic averages, highlighting ongoing appetite to move.
More recent indicators signal that the downturn is softening. The RICS report that confidence is gradually returning as interest‑rates ease. Forward‑looking sentiment improved notably, with a +22% reading for near‑term sales expectations, the strongest level since October 2024.
At the same time, the stock of homes for sale has risen to an eight‑year high, improving buyer choice and supporting transaction volumes. Falling inflation and stabilising mortgage rates - now expected to settle around 4% may further support demand as 2026 progresses.
Lettings update
Bristol’s lettings market remains strong, with rents still at historic highs and landlord yields continuing to outperform much of the wider South West. Supply has begun to improve modestly, but demand remains consistently robust across the city.
Over the last 12 months, the average rent achieved for homes let in Bristol was £1,458 per month. This is a +2.6% change on the previous 12 month period. 71% of homes let in the past 12 months were flats, achieving an average rental value of £1,403 per month. Houses achieved an average rent of £1,620 per month.
There are currently 4,207 properties available to rent in Bristol which is 45.2% higher than a year ago.
Mortgages
The Bank of England base rate currently stands at 3.75%, following a quarter‑point cut in December 2025, which brought the rate down from 4.00% - its first move after holding at 4% at the 6 November 2025 MPC meeting.
Inflation has continued to ease. The latest available figures show UK CPI inflation at 3.2% in November 2025, down from 3.6% in October and marking an eight‑month low.
Mortgage rates continued their downward trend into early 2026
The average 2‑year fixed rate is 4.83% (January 2026). The average 5‑year fixed rate is 4.91%. These remain below 5%, continuing the softening that began in late 2025.
For borrowers with low loan‑to‑value (LTV) ratios, the best rates are sharper:
Best 2‑year fixed deals start around 3.50%. Best 5‑year fixed deals start around 3.74%. (As per HomeOwners Alliance data, 17 January 2026.)
Tracker mortgages typically sit at Base Rate + 0.5 to 1.0%, meaning most fall between approximately 4.25%-4.75%, and average SVRs remain elevated at around 7.25%.
Property market outlook
Market outlook for 2026. Renewed optimism.
Looking ahead, the consensus among property market experts is for steady, modest growth rather than any dramatic swings. After the dip in activity due to the late Autumn budget, Bristol’s housing market continues to renew momentum as we begin 2026.
We hope that was useful and informative. As always, our teams are here to help, get in touch with any questions about your local property market.
If securing a new mortgage or arranging a re-mortgage is important for you right now, click here to book an online consultation, our mortgage brokers are independent, and their services are free to you.
Finally, if you are (understandably) confused by some of the mixed market reporting, not least by some of the more sensational news reporting each month, click here for some independent insight into how House Price Indexes are compiled.
Sources: Rightmove, Zoopla, On the Market, Dataloft by Price Hubble, Land Registry, ONS National House Price Index, DLUHC.