Despite the standstill in prices in February, January’s record asking price increase for the time of year means that it is still the strongest start to a year for asking prices since 2020, with prices up by 2.8% since December.

Rightmove says early year price growth was front-loaded into January as confidence rebounded following the prolonged Autumn Budget uncertainty.

However, high choice of homes for sale and steadying buyer activity have prevented a February rise.

Rightmove notes that the average property price is the same as a year ago, which is particularly beneficial to first-time buyers saving up their first deposit.

Meanwhile, average earnings are up by 4.7% year-on-year, which outpaces the last three years of cumulative property price growth.

Data also shows that the number of homes for sale is at an 11-year high for this time of year.

With average mortgage rates still near their lowest level since September 2022’s mini-budget, Rightmove’s daily tracker shows that the average two-year fixed mortgage rate is now 4.28%, significantly down from the 4.96% figure a year ago.

Finova business development director Hamza Behzad says: “Following last month’s record-breaking figures with the biggest monthly jump since June 2015, today’s data suggests that early-year momentum is being sustained rather than fading.”

“It’s still an encouraging start to the year, with sellers showing renewed confidence after several months of muted price growth.”

“For buyers, affordability remains the defining theme. While mortgage rates are still higher than the ultra-low levels seen in previous years, gradual improvements in borrowing costs and potential interest rate cuts in the spring are rebuilding confidence.”

“Buyers are returning, but they are more selective, even with pricing stabilising around the mid-4% range.”

“Regulatory changes, including the Renters’ Rights Bill, will reshape parts of the lending and rental markets, but they won’t determine the direction of house prices just yet.”

“The real driver is likely to be confidence – shifts in sentiment and investor appetite are far more likely than a sudden or dramatic price correction.”

Also commenting, MT Finance director Tomer Aboody explains: “More stock coming to the market is inevitably keeping prices in check but nevertheless the mood in the housing market is more buoyant at the start of this year than the end of last with increased activity from buyers and sellers.”

“With the prospect of further rate reductions, we are hoping to see increased activity in the form of more transactions as the year pans out.”

“Lower mortgage rates will help but may not be enough on their own – encouragement from the government in the form of another stamp duty concession or some form of assistance for first-time buyers may be required to boost activity in a meaningful way.”

Former RICS residential chairman Jeremy Leaf adds: “When the increase in demand just about matches the increase in supply, the result is stalemate. Prices are not really moving.”

“However, Rightmove’s figures reflect asking prices not values, which determine whether genuine interest is attracted.”

“Price stability, complemented by lower mortgage costs and lender flexibility, is supporting much more demand on the ground, particularly from first-time buyers while average earnings outpace house-price growth.”

“However, caution remains not just as a result of more choice but continuing economic and political uncertainty so, looking forward, steeper price rises are unlikely – at least for the time being.”