The average asking prices for new sellers experienced a notable 1.3% month-on-month climb, reaching £359,748, marking the most substantial December-to-January surge since 2020. However, average prices remain 0.7% lower than the corresponding period last year.
Rightmove's January House Price Index further discloses a 20% increase in the number of sales agreed during the first week of the year compared to the previous year, signaling a robust return of buyer confidence, particularly when contrasted with the uncertain post-mini-Budget phase a year ago.
Post-Christmas, Rightmove observed nine out of its ten busiest days on record for individuals obtaining a Mortgage in Principle to assess their borrowing capacity, indicating an early indication of individuals strategizing for their 2024 plans.
Tim Bannister, Rightmove’s Director of Property Science, suggests a more consistent market for movers in 2024 following a stop-start pattern in 2023. The influx of new sellers into the market, coupled with more assertive pricing, is noted as a positive trend. Bannister emphasizes the need for sellers to temper their price expectations, cautioning against being overly influenced by New Year enthusiasm.
Looking ahead, Bannister acknowledges the anticipated General Election in the latter part of 2024, predicting a temporary slowdown in activity in the weeks leading up to the election as individuals await outcomes and assess potential impacts on their housing plans. He emphasizes the importance of monitoring economic news throughout the year.
Nathan Emerson, Chief Executive of Propertymark, expresses satisfaction for sellers as home values increase despite economic challenges. He hopes that the rise, coupled with lower interest rates, will encourage homeowners who had postponed moving due to economic uncertainties.
Chris Rowson, Managing Director at Sharman Quinney in Cambridgeshire, notes a promising start to the year with positive signs such as increased valuation appointments, buyer inquiries, and demand for mortgage appointments. Rowson suggests that the housing market is gaining momentum.
Paul Bayliss, Director at The Square Room Estate Agents on The Fylde Coast, highlights the significance of lower mortgage rates contributing to increased buyer confidence. Activity from first-time buyers is noted, along with a return of upsizers who are now more confident in securing larger mortgages for bigger homes. Despite being early in the year, Bayliss expresses optimism about the potential for a positive 2024 in the market.
