A jump in both buyer and seller activity could be a promising start to the new year for U.K.’s real estate market, according to a report from Rightmove on Monday.
Average asking prices rose monthly by 1.3% to £359,748 (US$455,932), the largest December to January price increase since 2020, though average prices still remained 0.7% lower than a year ago.
Additionally, the number of new listings was 15% higher during the first week of the year compared to last year.
“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,” Tim Bannister, Rightmove’s director of property science, said.
On the buyer side, demand was 5% higher than the same time last year, and the number of sale agreements shot up by 20% annually, according to the report.
“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,” Bannister said. “Elevated mortgage rates and the wider cost-of-living squeeze are still limiting buyers’ spending power.”
Early indicators, though, show that 2024 should be a more stable year for the mortgage market—the average five-year rate is now 4.86%, a sizable drop from the July 2023 peak of 6.11%.
