Average UK house asking prices came in at £362,839 in February, edging up just 0.1% from a year ago – but posting the first annual price growth after six months of falls.
Agreed sales in the first six weeks of the year are 16% higher than over the same period last year, and 3% higher than in the more normal market of 2019, as mortgage rates stabilise after falling from their peak, according to Rightmove’s latest House Price Index.
It adds that asking prices lifted, 0.9%, or £3,091 in February compared to the previous month, while this was the first rise since last July on an annual basis.
But the survey says: “The market remains very price-sensitive, and appears to be operating at two speeds, with properties that are priced accurately being snapped up by budget-conscious buyers, while over-priced properties are left on the shelf.”
It takes more than two weeks longer to find a buyer than at this time last year, the report adds, with the average time to sell at its slowest since 2015, excluding the initial pandemic lockdown months of April and May 2020.
The survey says: “With the 2024 Budget approaching [6 March], more support to help first-time buyers onto the ladder would be welcome, with activity levels lagging behind in this sector as mortgage rates stay elevated and saving for a deposit remains challenging.”
Rightmove director of property science Tim Bannister points out: “Mortgage rates have fallen considerably from their peak and are now remaining broadly stable after the uncertainty of late 2022 and 2023.
“Momentum to move in 2024 is continuing to build, but prospective sellers mustn’t get carried away.
“Buyers now have more choice of property for sale and many are still very price-sensitive, with mortgage rates remaining elevated.”
MT Finance director of property lender Tomer Aboody says: “As confidence starts to creep back into the market due to the reduction in mortgage rates and lower inflation, we are seeing higher sales volumes, with vendors encouraged to sell.
“Encouragingly, while sales have picked up, vendors are pricing correctly in order to attract buyers. This, in turn, is making a property purchase more affordable and appealing to buyers. Unless there is some dramatic intervention from the government, we don’t expect to see a huge increase in pricing in the forthcoming 12 months or so.”
Propertymark chief executive Nathan Emerson adds: “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.”
More2life managing director Ben Waugh points out: “The new year was marked by increased confidence across the market as many high street lenders announced cuts to their existing residential mortgage rates.
“However, while today’s Rightmove house price index results indicate that house prices have increased slightly since December, the picture for the market remains a little more complex than it did last month.
“Recent volatility in swap rates has meant that some lenders are now repricing upwards, which may leave buyers with the question of whether now is the right time to take a step onto the property ladder.”
