The average house price in the UK has reached £359,748 in January according to Rightmove’s latest House Price Index as the average price of a property coming to market has increased by an average +1.3% in the new year – an average increase of £4,571.
The average price of properties coming to market in the UK in January has risen by +1.3% (+£4,571) according to the latest House Price Index released by Rightmove, bringing the average house price in the UK property market to £359,748.
While prices in the UK property market tend to typically increase in January after a quieter month in December, the average price increase experienced this month is the highest increase for January seen since 2020 and is also over 50% higher than the 20-year average increase of +0.6%.
“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.‘‘
While it is only the first month of the year, Rightmove have declared that both buyer and seller activity in the market has significantly increased compared to the same period 12 months ago which shows the overwhelming confidence returning to the market when compared to the state of the market following Kwarteng’s budget.
Additionally, the number of buyers looking in the market who contacted agents about purchasing homes for sale in the first week of January 2024 was +5% higher than 12 months ago.
“January is on course to be the busiest month for people getting a Mortgage in Principle on Rightmove since that service was launched in 2022. Whilst it is still early days, this is another positive sign of future movers getting their 2024 budgets and plans in place.”‘‘
The number of properties coming to the UK property market has also reached +15% higher than the start of the previous year, following a record number of properties launching on the Rightmove platform on Boxing Day, with the total number of properties available in the market just 1% higher than the normal levels of market activity in 2019.
“The most positive early indicator for 2024 is that the number of sales being agreed is 20% higher at the start of the year than in the same period last year. This also shows that many sellers are pricing attractively enough to tempt buyers who were hesitant to commit a year ago when the outlook for mortgage rates and buyer affordability was much more uncertain.”‘‘
With the average interest rate for a 5-year fixed mortgage now 4.86% as the likes of HSBC, Halifax, and other big names in the mortgage product market have recently decreased their interest rates, the UK property market is set to have a much more “stable” backdrop for the year heading into 2024 compared to the fall out following Kwarteng’s budget at the end of 2022 heading into 2023.
The first cut to the Bank of England’s base rate is also predicted to happen later this year, putting further faith in the likelihood of mortgage rates continuing to decline in the UK over 2024.
At Beech Holdings we have been an award-winning UK developer in the industry for over 20 years, meaning we have gained valuable experience and insight into the UK property market over the last two decades that has been able to assist and inform our clients and investors in their investment plans.
To understand further how you can capitalise on the current market and plan your investment journey for the year ahead, get in touch with our expert team of property consultants today or call directly at +44 (0) 161 791 4600.