The number of new properties coming onto the market for sale at the start of January was 15% higher and buyer demand 5% higher than this time last year, latest data from Rightmove reveals today.

Average new seller asking prices rose by 1.3% (+£4,571) month-on-month to £359,748, the biggest December to January increase in prices since 2020, though average prices are still 0.7% lower than at this time last year.

Rightmove’s January House Price Index also reveals that the number of sales agreed is 20% higher than during the first week of last year, indicating a strong return of buyer confidence when compared with the unsettled post-mini-Budget period a year ago.

And since Christmas, Rightmove has seen nine of its 10 busiest days on record for people getting a Mortgage in Principle to see what they can afford to borrow, another early sign of movers getting their 2024 plans in place.

STOP-START MARKET

Tim Bannister, Rightmove’s Director of Property Science, says: “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.”

And he adds: “A General Election is expected to be held during the second half of 2024, and traditionally we see a temporary slow-down in activity in the weeks before an election, as movers wait for the outcome and assess any impact that it may have on their housing plans.

“It will be important to keep a careful eye on this and on the impact of other economic news this year, but for now the data at the start of 2024 points to building momentum, and reasons for growing market optimism.”

CHALLENGING

Nathan Emerson Chief Executive of Propertymark, says: “Sellers will no doubt be happy that their homes have increased in value month on month despite the challenging economic situation.

“Serious buyers continue to complete on their homes, but what we now hope is that this increase, combined with lower interest rates could encourage those homeowners who have been holding back on their next home move due to previous economic turmoil.

 “It is now vital that the UK Government continues working towards reducing inflation in order to increase momentum in the market.”

COLD OUTSIDE

Chris Rowson, Managing Director at Sharman Quinney in Cambridgeshire, says: “It’s certainly cold out there at this time of year, but the housing market is just heating up.

“We’ve had a really promising start to the year, with some very positive signs. Future sellers are getting their valuation appointments booked in, future buyers are enquiring 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.”

And Paul Bayliss, Director at The Square Room Estate Agents on The Fylde Coast, adds: “The key thing is mortgage rates, and with rates coming down from July and into the start of 2024, we can see buyers have got more confidence.

“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 getting started, but we’re optimistic about what 2024 can bring.”