UK average house prices rise 1.3% - Rightmove

Average UK house prices rose 1.3% last month, posting the largest jump in three years amid signs the market was starting to ease, according to a Rightmove survey published on Monday.

The rise for homes put on the market between December 3 and January was also more than double the average increase for this time of year, Rightmove added.

"For now the data at the start of 2024 points to building momentum, and reasons for growing market optimism," said Tim Bannister, director of property science at Rightmove.

The number of agreed sales was 20% higher in the first week of January compared to the same period last year, with buyer demand up 5%. The number of homes coming to the market rose by 15%.

"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," Bannister said.

"Elevated mortgage rates and the wider cost-of-living squeeze are still limiting buyers' spending power."

Reporting by Frank Prenesti for Sharecast.com