January house price increases

Future sellers are scheduling valuation appointments, while prospective buyers are actively making enquiries, arranging viewings, and submitting offers. The early days of 2024 are showing positive signs, although caution is advised to be realistic with pricing for a prompt offer.

The momentum for 2024 is further emphasised by the growing number of individuals initiating the Mortgage in Principle process to gauge their borrowing capacity. Rightmove has recorded nine of its ten busiest days for this activity since 27th December, indicating a strong start to the year and positioning January as potentially the busiest month since 2022.

The average asking price for homes in Great Britain has surged by £4,571 (+1.3%) this month, reaching nearly £360,000—the most significant New Year increase since 2020. Despite this rise, it remains lower than the previous year, highlighting the realistic pricing expectations of new sellers as the market continues to recover from historically high mortgage rates.

The nationwide average asking prices for January 2024 stand at £359,748, showing a monthly increase of 1.3% but a slight annual decrease of 0.7%. Looking ahead, predictions suggest a marginal dip in average asking prices by the end of the year, with a 1% decrease nationally.

Three key considerations for 2024 homebuyers include the anticipated marginal dip in average asking prices, a notable increase in new property listings compared to the previous year, and a continued decline in mortgage rates, creating a more stable backdrop for the market.

The positive trend extends to the current housing market for sellers, with a 20% increase in the number of sales being agreed compared to the same period last year. However, pricing competitively remains crucial, as the number of homes coming to market outpaces the growth in buyer enquiries.

In summary, the early data for 2024 suggests a strong momentum in the housing market, with increased activity from both sellers and buyers. While challenges such as elevated mortgage rates and economic uncertainties remain, the overall outlook is positive for the property market.

If you’re a homeowner looking to sell, please contact your nearest branch. If you’re searching for a home, feel free to take a look at properties on our website, here.