Average price tag on a home jumped by around £4,500 in January – Rightmove

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The average price tag on a home jumped by around £4,500 month-on-month in January, according to a property website.

Across Britain, the average price of a property coming on the market increased by 1.3% or £4,571 month-on-month, to £359,748, Rightmove said.

Despite the increase, average asking prices are still 0.7% lower than a year earlier.

Rightmove said the volume of new properties coming onto the market for sale is 15% 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 5% 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.”

The report also quoted the views of estate agents.

Chris Rowson, managing director at Sharman Quinney in Cambridgeshire, said: “Future sellers are getting their valuation appointments booked in, future buyers are inquiring and getting their viewings booked in and we’re also seeing really high demand for mortgage appointments, as movers seek to understand their affordability and position at the start of the year.

“Most importantly, we’re seeing offers being made, and a high number at that. It is early days and not a time to get carried away, but we’ve had a good start.”

Paul Bayliss, director at the Square Room Estate Agents on the Fylde Coast in Lancashire, said: “We’ve seen a lot of activity from first-time buyers, now ready to make their move at the start of the year, and with mortgage rates more settled, we’re also starting to see upsizers return who are now more confident to take out a larger mortgage for a bigger home.

“The market is just…