Average house price up £4,500 in January, says Rightmove

House prices in the UK rose £4,571 in January compared to December, according to Rightmove.

According to the real estate company, the growth was the “strongest January monthly increase” in asking prices since 2020, with the 1.3% rise putting the average property price at £359,747

Despite this, average prices are still 0.7% lower than this time last year.

In December 2023, the average asking price was down by 1.9% month-on-month (-£6,966) and decreased by 1.1% year-on-year, meaning the average house price stood at £355,177. 

Rightmove’s house price index data for January has indicated that the number of new properties coming onto the market for sale is 15% higher than in the same period last year.

>> See also: Average house price drops £7,000 in December, says Rightmove

>> See also: House prices rise for third consecutive month, says Halifax

Buyer demand in the first week of 2024 was also 5% higher than in the same period last year.

However, Rightmove said that “competitive pricing from sellers is still vital, with the number of new properties coming to market outpacing the rise in demand”.

According to the index, 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”.

The average five-year mortgage rate is now 4.86%, compared to 6.11% at the July 2023 peak.

Rightmove stated that “while there may be more surprises to come, early indicators suggest a more stable year for the mortgage market after its volatility from September 2022 onward”.

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”.

Halifax’s house price index for December 2023 found that house prices had risen for the third month in a row, but suggested that they could fall by between 2% and 4% in 2024.