The average price of newly marketed properties has risen by 1.5% (+£5,279) this month to £368,118, higher than the historic average March increase of 1.0% and the biggest for 10 months as the market continues its recovery after a muted 2023.

This is according to the latest data from the Rightmove HPI which suggests the positive start to the year continuing, paving the way for a greater number of home purchases than last year.

With average asking prices still £4,776 below the May 2023 peak, Rightmove says more are seeing a window of opportunity to buy.

The number of sales being agreed is now 13% higher than at this time last year. And buyer demand is now 8% above last year, led by the less mortgage-rate-sensitive larger homes sector and London.

However, Rightmove warns that despite a better-than-expected start to the year, the market remains sensitive to pricing and external events:

Rightmove’s real time data shows the growth in buyer demand was tempered somewhat by a lacklustre Spring Budget, with no direct help for first-time buyers or mortgage market innovations.

The average time to find a buyer is 71 days, the longest at this time of year since 2019. Attractively priced properties are quickly being cherry-picked, but over-optimistically priced sellers are taking longer to find a buyer.

Commenting on the latest Rightmove data Together head of intermediary sales James Briggs said: “With affordability concerns seeming to ease, buyers could be in a position to snap up bargains, as momentum in the market picks up.

“The ambition for homeownership is far from dwindling, with many younger buyers planning to step onto the housing ladder. From our own research, we know a fifth (20%) of first-time millennial buyers opted to move back in with their parents to expedite saving for a deposit”.

Briggs added: “An additional boost came with the chancellor announcing in the recent budget that the higher rate of capital gains tax on residential property sales will be cut by 4%, triggering sales from rental investors, and we could see a new wave of from those who have put off the option of exiting the rental market, opening up more family homes and spaces for first time buyers”.

Ask Partners CEO Daniel Austin said today’s data showed that the property sector was showing signs of recovery and the outlook has considerably improved.

“Rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential”.

He added: “In the realm of commercial real estate, factors like physical condition, location, and age significantly influence a property’s value. Well-maintained properties boasting modern amenities tend to command higher prices, while neglected ones may struggle to attract tenants or investors.

“In the current market, the emphasis has shifted towards the importance of location and quality over the yield on debt or cost. We anticipate opportunistic acquisitions of prime properties in prime locations”.

Saffron for Intermediaries national account manager Phil Lawford said: “After the first rise in average mortgage rates in six months between February and March, the increase in house prices announced today is a pleasant reminder of the positive sentiment that has returned to the market in 2024″.

He added: “There is no doubt that the market is on steadier ground than it has been for some time. In February, the Royal Institution of Chartered Surveyors reported that buyer demand was at its strongest in two years, and falling swap rates at the beginning of the year triggered a rates war as lenders tried to convert this demand into custom.

“While there is clearly much to be positive about, the role of the broker remains crucial in an environment where uncertainty and volatility hide beneath the surface. With rates creeping up (albeit after a flurry of cuts) and the average shelf-life of a mortgage product falling from 28 days to 15 days over the last month, we are not quite yet over the hump and both lenders and advisers will need to work hard to help borrowers find solutions that work for them.”