Buyer enquires increased by 15 per cent between December 2019 and January 2020, Rightmove’s latest house price index shows.
Average asking prices across the UK rose by 2.3 per cent over the same time frame. This has resulted in the average asking price rising from £300,025 to £306,810.
There has also been a 7.3 per cent growth in the number of sales agreed this month.
In the first-time buyer market, the average asking price increased by 1.6 per cent to £193,103.
Both the ‘second steppers’ and ‘top of the ladder’ markets also saw a rise in the average asking price between December and January, increasing by 1.7 per cent 3.1 per cent to £275,947 and £522,095, respectively.
Regionally, London noted the greatest uplift in average asking prices on a monthly basis, rising by 2.7 per cent to £350,607. This was followed by the West Midlands, which recorded a rise of 2.6 per cent to £230,222.
In contrast, Wales saw the largest decline in the average asking price over the same time frame, falling by 0.9 per cent to £193,106. Scotland followed, falling by 0.8 per cent to £149,664.
Rightmove director and housing market analyst Miles Shipside says: “These statistics seem to indicate that many buyers and sellers feel that the election result gives a window of stability.
“There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market.
“One factor behind the upwards price pressure has been the shortage of property coming to market in many areas of the country, with some would-be sellers postponing their moves until they judge the outlook to be more certain.
“First-time buyer activity has remained strong, buoyed by cheap interest rates and the high costs of renting. The downside of this high demand is upwards price pressure, with the average price of typical first-time buyer property hitting a new record high.
“However, the annual rate of increase remains fairly modest at 1.6 per cent, less than the rate of growth in average earnings, so affordability has actually improved a little for first-time buyers.”
North London estate agent Jeremy Leaf comments: “Although Rightmove looks at asking rather than selling prices, they provide an important indicator of market activity.
“Asking prices can be notoriously unreliable, but these confirm what we have been seeing on the ground for the last month or so.
“Sellers inevitably are a little bit more optimistic at this time of year but it remains to be seen, probably by the end of January/beginning of February, whether these higher prices, much of which is driven by shortage of stock, actually turn into agreed prices and transactions.”
Benham and Reeves director Marc von Grundherr adds: “The coal that fills the furnace of the UK property market is very much market sentiment and it does not matter what your stance is on Boris Johnson or the election result, even the slightest inkling of returning market stability has been enough to reignite the fires both where buyer and seller activity are concerned.
“There was an instant uplift in buyer commitment following the result and those acting fast enough were able to secure some very favourable deals. However, as is always the case, a tsunami of buyer demand soon spurred an increase in asking prices and savvy sellers were quick to ride the turning tide to ensure they secured the best price for their property.
“This rather emphatic return to form was always on the cards given the resilience of the market and we should not be surprised if this is only the start of a very positive new decade for the UK property sector.”
