Rightmove’s latest house price index indicates a 1.3% month-on-month increase in average new seller asking prices to £359,748.
However, values are still 0.7% lower than this time last year.
The first week of 2024 shows promising activity, with a 15% rise in new properties coming to market and a 5% increase in buyer demand compared to the same period last year.
Competitive pricing remains crucial as the number of new properties surpasses the rise in demand, with investors still weighing up buy-to-let costs amid higher mortgage rates and raised interest rates.
Additionally, sales agreed during the first week of 2024 are 20% higher than the previous year.
Rightmove notes increased interest post-Christmas, with nine of its ten busiest days for mortgage inquiries since then.
Rightmove’s Tim Bannister had the following to say about the most recent Rightmove data:
“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 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.”
Find Out More: Make sure you know how to spot low-risk investments in the UK to make the most out of your buy-to-let strategy. Alternatively, check out our comprehensive guide on how to buy a house to rent out.
