Bigger than usual New Year bounce, latest report from Rightmove

Average House Price in the UK in 2023

After two months of falls, average new seller asking prices rise again by 0.9% (+£3,301) this month according to Rightmove, the biggest increase at this time of year since 2020 as New Year sellers test the market. This takes the average price of a property to £362,438.

The seasonal increase in new seller asking prices this January from December is particularly encouraging for movers who are looking for the reassurance of familiar trends and a calmer, more measured market after the rapidly changing and at times chaotic economic climate of the final few months of last year. However, while average asking prices did rise in January, they are still £8,720 less than their peak in October.

Drop in Asking Price?

It will be important for most sellers to remember that a drop in asking price is likely not an actual loss compared with what you paid for it, only a failure to live up to aspirations. And as ever, hyper-local market exists that do not follow the national average.

The number of prospective buyers sending an enquiry to an estate agent about a property for sale jumped by 55% in the last two weeks, compared with the previous two weeks, an indicator of pent-up demand. In recent years, this New Year jump in enquiries has been around 45%, and it was last higher than this in 2016, a potentially positive sign for the year ahead.

Home Valuations

On 5th January, the number of people sending a request to an estate agent to value their home, typically the first step for a future seller, was the third largest on record, an early sign of market confidence. Indeed, the last week has been the busiest for these home valuation requests since August 2022. However, even with the prospect of more sellers coming to market, the number of available homes for sale is still well below long-term norms. It’s early days, but there are some signs of positivity in the first few weeks of the year.

Average monthly mortgage payments for hard-pressed first-time buyers continue to fall as mortgage interest rates soften, with some deals on offer below 5%. Further easing of mortgage interest rates this year may tempt more first-time buyers to send enquiries to estate agents and begin the process of a 2023 move.