Average House Price in UK Property Market Increases by 0.9% in February

The average house price in the UK property market increased by 0.9% (+£3,091) in February according to the latest House Price Index from property website, Rightmove, with the number of agreed sales in the first six weeks of 2024 now 16% higher than the same period last year and 3% higher than the ‘normal’ market level in 2019.

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The average UK house price reaches £362,839 in February

According to the latest House Price Index released this morning by property website, Rightmove, the average price of a property coming to market in February has increased by 0.9% on the previous month – equivalent to £3,091 and bringing the average house price in the UK up to £362,839 – and increased by 0.1% on the same period last year, showing signs of a growing market momentum.

The number of sales agreed in the first six weeks of 2024 has also increased by 16% on the same period last year, showing that the early-bird buyers in the market have confidence in the market and after seeing the right conditions to move are seizing the opportunity.

“We said that February would be an important indicator for the year ahead, and the question was whether the Rightmove Boxing Day bounce in buyer activity would keep its spring into March or lose momentum. It's proved to be the former, with the number of sales agreed continuing to considerably outstrip last year. Early-bird Boxing Day buyers got a head start in cherry picking from a record level of new property choice and have now been joined by many other buyers also believing that 2024 offers the right market conditions to move.” Tim Bannister, Director of Property Science at Rightmove.
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The number of sales agreed within the first six weeks of the year is supported by the increase in buyer and seller activity across the market, as throughout the period, the number of properties that came to market was 7% higher than in the same period last year and the number of buyers enquiring on available properties also increased 7% year-on-year.

Accurately and competitively priced properties are being “snapped up”

Budget-conscious buyers are dictating the movement in the UK property market according to Rightmove, as despite the positive numbers and increase in average house prices, agents are reporting that “accurately and competitively priced” properties are being “snapped up” by buyers and homes that have over-inflated prices are “immediately” standing out against the more competitively priced properties and are effectively being ignored by price-sensitive buyers.

The level of power that budget-conscious buyers currently wield over the UK property market is evidenced by the fact that despite the high levels of activity in the market that surpasses last year, it is now taking on average more than two weeks (16 days) longer to successfully find a buyer than during the same period last year.

“Momentum to move in 2024 is continuing to build, but prospective sellers mustn’t get carried away. Buyers now have more choice of property for sale, and many are still very price-sensitive, with mortgage rates remaining elevated. Sellers who are serious about moving this year would be well-advised to ride this wave of increased buyer confidence with an attractive asking price before any pre-election jitters or unexpected events dampen the momentum.” Tim Bannister, Director of Property Science at Rightmove.
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What can we expect from the Spring Budget in March?

As we approach March and the upcoming Budget announcement from the UK government, many property professionals are eager to see some support for the housing market, specifically for first-time buyers, as while the mortgage market may have recovered its stability, mortgage rates are declining, and the mortgage industry has confidence in the market for 2024, it is expected that rates will settle at their elevated levels for the near future and as a result, impacting the activity in the UK property market.

To learn more about the current state of the UK property market and how you can find the right investment for your future, get in touch with our expert team today or call directly at +44 (0) 161 791 4600.

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