By Anthony O. Goriainoff

The average price of property coming to the market in the U.K. rose by 1.7% in January, representing the largest jump in prices at the start of the year since 2020, according to new Rightmove data.

The U.K. property website said that although the average price was 366,189 pounds ($448,178), new seller asking prices were still 8,942 pounds below the record seen in May 2024 and reflect buyer affordability constraints.

The number of new properties coming to the market is 11% ahead of the year-prior period, with the average number of homes for sale per estate agency branch currently at the highest level it has been in 10 years for this time of the year.

For the year ahead, Rightmove forecasts a larger number of transactions at 1.15 million, and an average asking price increase of 4%.

Buyer activity has been encouraging as many return from the festive season to make their move happen, with the number of buyers since Dec. 26 contacting estate agents about homes for sale up 9% from the same period in 2024.

According to Rightmove, although high buyer choice has contributed to a rise in buyer enquiries and sales agreed compared to a year ago, this also means there is strong seller competition as some sellers may have been too optimistic on their initial pricing and lost out to their more competitively-priced neighbors.

Still, despite this promising start, Rightmove highlights that there are uncertainties ahead such as the pace and number of interest-rate drops, as well as the effect of the U.K.'s stamp duty deadline of March 31. The stamp duty refers to the tax paid on a home purchase.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

January 20, 2025 00:30 ET (05:30 GMT)

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