UK housing market gathers pace at the start of 2024 - 19-01-2024

According to a Rightmove study released on Monday, average asking prices for British homes had the best start to the year since 2020. These finding’s add to indications that the sector's recession may be abating as demand begans to increase in January.

The report outlined how the average price of houses listed for sale between December 3 and January 6 increased by 1.3% from the previous month. This was the largest December to January price increase since 2020 and more than double the normal increase for this time of year.

"For now the data at the start of 2024 points to building momentum, and reasons for growing market optimism," Tim Bannister, director of property science at Rightmove, said.

Buyer interest increased by 5% and the number of agreed transactions increased by 20% during the first week of January compared to the same period the previous year. There was a 15% increase in the quantity of properties listed.

Rightmove's January period asking prices are still 0.7% less than the previous year.

However, according to Rightmove, average mortgage rates have decreased, from a peak of 6.11% for a five-year fixed term in July 2023 to 4.86% currently.

The Bank of England is expected by the financial markets to begin reducing rates in May, from their current 15-year high of 5.25%.

A spike in home prices has also been indicated by other data. The largest mortgage lender in Britain, Halifax, revealed earlier this month that prices increased by 1.1% in December, marking the first yearly increase in eight months.

If you would like to know more about investing in the UK property market, speak to a member of the Elavace team today.