The average price of property coming to market has hit a five-year high, according to new data released by Rightmove.
The figures reveal that the average asking price rose by 1.7%, or 5,992 this month, to reach an average of £366,189
The property portal has also revealed a hike in new properties that have come to market in recent weeks, along with a rise in number of buyers contacting agents about properties for sale.
New seller asking prices rise again amid growing demand – Property Industry Eye
Industry reactions:
Nathan Emerson, CEO of Propertymark, commented: “As we progress into the new year, it’s positive to see many of the variables that help power the housing market continue to align. We are still seeing regional disparity with regards to overall house price growth, and contributory factors such as inflation settling.
“What we are witnessing is an encouraging uplift in consumer confidence, with an average 10% leap in prospective buyers registering their interest to purchase. This, coupled with a desire for many existing transactions to beat any Stamp Duty increases across England and Northern Ireland before April, has opened the year with pace.”
Peter Lawrence, Founder at Lawrence Rand, said: “As we step into 2025, the housing market is already showing signs of robust activity, with demand from buyers increasing year on year. This growth is fuelled by a combination of economic stability, renewed consumer confidence, and slightly more favourable lending conditions.
“The supply side of the market is also showing encouraging trends, with a good level of new instructions coming onto the market for sale. Sellers are responding to the strong buyer demand and stable property prices, taking advantage of an opportune moment to list their homes. This healthy balance between supply and demand is fostering a dynamic marketplace, benefiting both buyers and sellers. If mortgages rates reduce notably, it could be a positive year ahead.”
Jeremy Leaf, north London estate agent, remarked: “There is one thing that is more highly priced than any other when it comes to buying a home – and that’s stability. Stability generates confidence to take on longer-term debt and move home.
“Demand remains strong but worries persist, not so much about the likelihood of a reduction in interest rates but the pace of their decline, as well as Budget implications for the jobs market later this year. As a result, some buyers are pressing the pause button, especially as there is so much more choice of property evidenced in these figures.
“Nevertheless, the underlying desire to move has not disappeared – transactions are just taking a little longer although many first-time buyers are still trying to beat the March deadline for stamp duty increases.”
Tom Bill, head of UK residential research at Knight Frank, commented: “Demand is likely to come under pressure in coming months as the impact of higher borrowing costs feeds through to mortgages. In addition to the pace of Bank of England rate cuts, what happens on bond markets in the early weeks of Donald Trump’s Presidency will have a fairly direct bearing on UK house prices this year.”
Jordan Halstead, CEO at Jordan & Halstead Estate Agents, added: “We have high hopes for a strong year in 2025, with a larger pipeline of sales compared with the start of last year. We expect a solid first three months in exchanges and completions. After the cold snap we’ve just had, viewings, offers and sales being agreed are picking up again at a solid rate.
“Sellers seem to be listening to our valuation recommendations more than previously, I think this down to expectations being more realistic, and an understanding that mortgage costs are now much higher. Lending is still a challenge with uncertainty in interest rates, but there is still hope mortgage rates will come down. This is causing some buyers to hesitate, hoping they will get a better deal.
“All in all, we expect a better year than 2024, but know that challenges are still ahead, with a lot riding on the government and Bank of England being consistent in their approach.”
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-new-rightmove-house-price-index/
