It continues to be a ‘tentatively promising start to the new year as buyer and seller activity jump, pushing annual asking prices back into positive territory, with the average new seller asking prices increasing by 0.9%, or £3,091, this month to £362,839.
According to the data from Rightmove, the number of sales agreed in the first six weeks of the year is 16% higher than in the corresponding period last year. However, the market remains price-sensitive, with many buyers very budget-conscious.
The analysis shows that sellers who price right initially are far more likely to sell quickly.
Industry reactions:
Nathan Emerson, CEO of Propertymark, commented: “Our members continue to tell us that the market is gathering momentum, however, people continue to be money conscious. Only serious buyers and sellers are making a move after finding a middle ground in their affordability provided through a decrease in property prices helping combat rises in interest rates.
“Many other people are eagerly waiting in the wings ready for a change in interest rates to make it easier for them to move home or step onto the property ladder for the first time. Therefore, as soon as they start to fall, we should start to see a further rise in completions and offers.”
Adam Feather, managing director of Robert Anthony Estate Agents, said: “Following a turbulent market in 2023, there are growing signs that this will be a smoother year for those looking to buy and sell properties. More new vendors are now entering the market, with many adopting increased price expectations as a result of greater demand from buyers. However, it is important that sellers remain realistic when setting their asking price.”
Michelle Niziol, CEO at IMS Property Group in Oxfordshire, said: “It’s been a positive start to the year, particularly when compared to the slower pace of this time last year. There’s a sense of optimism, helped hugely by mortgage rates dropping in recent months, which now seem to have settled and remained stable, giving prospective buyers assurance and confidence. With lower mortgage rates on offer and more properties for sale, now is a good opportunity for any would-be buyers out there. Despite the affordability constraints, we are still seeing a good level of activity in the first-time buyer market, which is encouraging the next time buyers to review their situation and supporting movement further up the property ladder. There is a good audience of buyers out there for properties priced well, also providing opportunities for those looking to sell.”
Kate Eales, deputy head of residential at Strutt & Parker, commented: “The start of this year has seen renewed optimism and positive sentiment in the wake of a further pause in interest rates and January inflation held at 4%. Optimism breeds confidence, and confidence is translating into more sellers and buyers coming into the market. Activity is trending upwards compared to this time last year, which is encouraging, but the market remains price sensitive. Motivated sellers need to be realistic with listing prices and take advice on how to effectively position their sale in the current market. Buyer’s budgets are still being largely constrained by expensive mortgage products, so it’s a careful balance.”
Jimmy Waight, head of Sales at John D Wood & Co, added: “We are witnessing a good start to the year in London’s property market, with buyers acting earlier than usual. The surge in activity can be attributed to the decreasing and now stabilising mortgage rates, which have prompted many individuals who postponed their moves last year amid uncertainty to now re-emerge. The current momentum is further underscored by an increase in registered buyers year-to-date compared to the same period last year. This positive trend suggests a renewed confidence in the market, and as we move into spring, we anticipate a continued upward trajectory in both buyer interest and property transactions.”
Property asking prices rise for second consecutive month, says Rightmove