The average price tag on a home jumped by around £4,500 in January compared to the previous month, according to a property website, as sellers hoped lower mortgage rates would support the market.
Across Britain, the average price of a property coming on the market increased by 1.3pc, or £4,571 month-on-month, to £359,748, Rightmove said.
It comes as lenders battle to offer buyers lower mortgage rates amid expectations that interest rates will be cut this year.
Despite the increase in average asking prices over the last month, they are still 0.7pc lower than a year earlier.
Rightmove said the volume of new properties coming onto the market for sale is 15pc higher than a year ago.
Competitive pricing from sellers is still vital, with the number of new properties coming to market outpacing an increase that is also being seen in buyer demand, the website said.
The number of potential buyers contacting estate agents about homes for sale in the first week of 2024 was 5pc higher than in the same period last year, with the growth in activity strongest in London and the North East of England, Rightmove said.
It added that the number of sales being agreed as January gets under way has been higher than the start of last year.
Tim Bannister Rightmove’s director of property science said:
After a stop-start market in 2023, the initial signs suggest a smoother year for movers in 2024.
More new sellers are now entering the market, and with more confident pricing. While the increased level of buyer activity that we’re also seeing may justify some of this increased pricing confidence from sellers, it’s important that sellers who are keen to find a buyer don’t get carried away with New Year enthusiasm when setting their price expectations.
Elevated mortgage rates and the wider cost-of-living squeeze are still limiting buyers’ spending power.
Accurate and realistic pricing for their local area is the recipe for success for sellers looking to get moving in 2024.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
