The Rightmove Price Index has been released, it can be seen here, and shows that the start of 2024 shows a cautiously optimistic trend in the UK property market, with both buyer and seller activities picking up significantly compared to the same period last year. New seller asking prices have seen a notable rise of 1.3% from December to January, marking the largest increase for this period since 2020. Although average prices are still slightly lower than they were a year ago, the increase indicates growing confidence among sellers.

There has also been a 15% increase in the number of new properties entering the market, and buyer demand is up by 5%. Despite the higher volume of properties for sale, competitive pricing remains crucial as the market stabilizes. The number of sales agreed has jumped by 20%, suggesting that buyers are more confident and willing to commit compared to last year, particularly after the uncertainty following the 2022 mini-Budget.

The mortgage market is showing signs of stabilization, with average 5-year mortgage rates dropping to 4.86%, down from a peak of 6.11% in July 2023. This improvement, along with an increase in people seeking Mortgage in Principle agreements, indicates that more buyers are preparing to move forward with their plans in 2024. Overall, while it’s early days, the data suggests a more stable and active property market for the year ahead.

Tim Bannister Rightmove’s Director of Property Science comments “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, and it’s been proven that over-optimistic pricing makes a move much less likely.”