The average price of a house rose by around £4,500 in January compared to the previous month as sellers hoped lower mortgage rates would support the market, according to the property website.
The average price of a property for sale across the UK rose by 1.3%, or £4,571, to £359,748 month-on-month, according to Rightmove.
It comes as lenders scramble to offer lower mortgage rates to buyers amid growing expectations that interest rates will be cut this year.
Despite the increase in average asking prices last month, they are still 0.7% lower than last year.
Rightmove said the amount of new properties coming onto the market for sale is 15% higher than a year ago.
Competitive pricing by sellers remains important, the website said, with the number of new properties coming onto the market outpacing the increase in buyer demand.
According to Rightmove, the number of potential buyers contacting estate agents about selling a home in the first week of 2024 rose by 5% compared to the same period last year, with London and the North East of England seeing the strongest growth in activity. said.
It added that the number of sales agreed at the start of January was higher than at the beginning of last year.
Tim Bannister, Director of Real Estate Science at Rightmove, said:
After a stop-start market in 2023, initial signs suggest that 2024 will be a smoother year for movers.
More new sellers are now entering the market with more confident pricing. We have also seen an increase in the level of buyer activity, and while sellers’ increased confidence in pricing may be justified to some extent, sellers hoping to find a buyer are also seeing an increase in price expectations when setting their price expectations. , it is important not to get carried away with the New Year’s craze. .
Rising mortgage rates and pressure on the cost of living continue to limit buyers’ purchasing power.
For sellers looking to relocate in 2024, accurate and realistic local pricing is the key to success.