Average asking prices have increased by the largest amount for January since 2020, Rightmove data shows.
The latest Rightmove House Price Index for January shows the average price of property coming to market has increased by 1.7% on a monthly basis and by 1.8% annually. This is the largest increase in asking prices for this time of year since January 2020 and puts the typical price for a home on the market at £366,189 The figure remains almost £9,000 below May 2024’s record, which Rightmove says reflects buyer affordability constraints.
Second stepper homes are up by the most, rising 2.3% annually to £335,900 on average.
The biggest monthly rise was for top of the ladder homes, up 1.9% to £655,288. Meanwhile, typical first-time buyer homes were up £ 0.9% on a monthly basis and by 2.1% annually to £227,212.
Rightmove said the rise has been helped by a record number of early-bird new sellers coming to the market since Boxing Day, giving buyers the highest level of choice at the start of a year since 2015.
The number of new properties coming to market is up 11% annually, Rightmove said.
Meanwhile, the number of buyers contacting agents about properties for sale since Boxing Day is also 9% up compared with this time last year while the number of sales being agreed over the same period has increased by 11%.
Rightmove is forecasting 1.15 million transactions this year and predicts a 4% rise in asking prices.
But it has warned there are uncertainties ahead, including the pace and number of interest rate cuts and the impact of the Stamp Duty deadline on 31 March
Colleen Babcock, property expert at Rightmove, “It’s important to look at the bigger market picture, despite the positive early lead indicators that we’re seeing.
“Many buyers are still affordability-stretched, with high mortgage rates restricting borrowing power and limiting what they can afford to pay. Meanwhile, first-time buyers have seen support schemes reduce and some also face higher Stamp Duty fees from April, all while contending with record rents and trying to save up for a deposit. Rightmove’s early-year snapshot shows a promising start to 2025.
“However, the market needs a boost for that momentum to be sustained, in the form of early and ongoing interest rate cuts, which should hopefully help to reduce mortgage rates. Some further support for first-time buyers would also be welcomed, particularly in more expensive areas of the country.”
Commenting on the report, Matt Thompson, head of sales at Chestertons, said: “January started where December left off.
“We are seeing steady demand from buyers who feel motivated to finalise their property search as soon as possible. This spike in buyer activity is boosted by current speculation about potential rate cuts, which is encouraging forward planning house hunters to begin or finalise their search now and lock in a favourable rate nearer the time of contracts being exchanged.”
Source: Estate Agent Today