Rightmove: Average price tag on UK homes for sale increases by £4,500 in January 2024

Across Britain, the average price of a property coming on the market increased by 1.3% or £4,571 month-on-month, to £359,748, Rightmove said. But, despite the increase, average asking prices are still 0.7% lower than a year earlier, with Rightmove adding that the volume of new properties coming onto the market for sale is 15% higher than a year ago.

While competitive pricing from sellers is still vital, the number of potential buyers contacting estate agents about homes for sale in the first week of 2024 was 5% higher than in the same period last year. Subsequently, the number of sales being agreed as January gets under way has been higher than the start of last year.

“After a stop-start market in 2023, the initial signs suggest a smoother year for movers in 2024," said Tim Bannister, Rightmove’s director of property science. “More new sellers are now entering the market, and with more confident pricing. While the increased level of buyer activity that we’re also seeing may justify some of this increased pricing confidence from sellers, it’s important that sellers who are keen to find a buyer don’t get carried away with New Year enthusiasm when setting their price expectations.

“Elevated mortgage rates and the wider cost-of-living squeeze are still limiting buyers’ spending power," Tim added. "Accurate and realistic pricing for their local area is the recipe for success for sellers looking to get moving in 2024.”

Paul Bayliss, director at the Square Room Estate Agents on the Fylde Coast in Lancashire, said: “We’ve seen a lot of activity from first-time buyers, now ready to make their move at the start of the year, and with mortgage rates more settled, we’re also starting to see upsizers return who are now more confident to take out a larger mortgage for a bigger home.

“The market is just getting started, but we’re optimistic about what 2024 can bring."