Biggest January house price jump in 25 years
Average asking prices for homes in the UK have risen by 2.8% in January, the largest monthly increase for the start of the year in 25 years of Rightmove’s House Price Index reporting.
The national average asking price now stands at £368,031, up £9,893 on December. It is also the largest month-on-month increase since June 2015, marking a sharp rebound in sentiment following market uncertainty late last year.
According to Rightmove, national average prices are now 0.5% higher than a year ago. However, the number of homes available for sale is at its highest level for this time of year since 2014, and a third of existing listings have seen price reductions, prompting warnings for sellers not to over-price their homes.
The surge coincides with what the company calls the “Boxing Day bounce” – a sharp rise in activity as movers begin new year searches. In the two weeks after Christmas, buyer demand rose by 57% compared with the fortnight before, while the number of newly-listed homes increased by 81%. Rightmove recorded its busiest Boxing Day ever for website visits.
In Wales, the average asking price rose by 0.9% in January to £258,194, although prices remain 1.6% lower than a year ago. Sellers in the region are typically taking an average of 84 days to find a buyer.
Colleen Babcock, property expert at Rightmove, said: “It’s an encouraging start to the year to see sellers confident enough to list their homes at higher prices after several months of muted price growth last year, coinciding with more potential buyers returning to market.
“This new year seller confidence is a good sign, but sellers would do well to listen to the guidance of their agent when setting their asking price and avoid being over-optimistic. There’s a twelve-year high number of homes for sale for this time of year, so buyers have lots of choice.”
Rightmove’s mortgage tracker shows the average two-year fixed mortgage rate is now 4.29%, the lowest since before September 2022’s mini-Budget. A typical home-mover with a 20% deposit would save over £100 a month on mortgage payments compared to last year.
Matt Smith, Rightmove’s mortgage expert, said: “Mortgage rates have slowly but surely been coming down, to the extent that the average rate a typical home-buyer is likely to see is now the lowest since before the disruptive 2022 mini-Budget. The market is likely to remain steady for the next few months, with only minor changes up or down.”
Rightmove said it remains to be seen whether this early momentum continues into the spring selling season, traditionally the busiest time of year for the housing market.
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