Atom bank comments on ONS Private Rent and House Price data

21 January 2026

Chris Storey, Chief Commercial Officer, Atom bank

“The small uptick in house prices reflect the stability of the market at the tailend of last year, particularly as the caution and uncertainty surrounding the Budget eased. While we are very much in the early days of 2026, the ingredients are there for more growth in the year ahead, with Rightmove having reported asking prices have seen their largest January jump on record. Vendors are coming to the market, and feeling more confident about their prospects not just of achieving a sale, but getting a good price in the process.

“There is obvious demand from buyers, too. Rightmove reported its busiest ever Boxing Day, a useful barometer for the pent-up interest from those deciding whether to push forward with a move in the New Year, while the cost of those transactions are looking more appealing off the back of another Base Rate cut. As Moneyfacts put it, this year looks to be a “booming” one for the mortgage market, given mortgage choice has grown to its strongest level in 18 months, while rates look set to improve still further.

“That appetite needs to be matched with supply, however. Analysis shows the number of homes coming to market have reached a 12-year high, which is encouraging, but we desperately need to see new homes being produced at a faster rate. Recent analysis from S&P Global and Cips suggests housebuilding is in its biggest slump since the early days of the pandemic, and unless we see that situation improve substantially, there will be sustained upward pressure on house prices. New build properties will always appeal to buyers, given the lack of baggage that comes with them, and already command a premium. That premium is only going to become more significant if production doesn’t improve, risking freezing out whole swathes of buyers from the new-build market.”