Real estate portal site Rightmove said asking prices rose in early 2024 as lower mortgage rates helped boost economic activity.
Average asking prices rose 1.3% from December to January, but were still 0.7% lower than the same period last year.
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Susannah Streeter, head of finance and markets at Hargreaves Lansdown, said: “The housing market continues to show resiliency in the face of rising mortgage costs, and the RightMove data suggests there is hope. “It shows that prices have increased since the beginning of the year.”
“It was up 1.3% on January 6 compared to early December, more than double the average increase for this time of year, with agents and distributors feeling more optimistic about demand. The deep freeze is starting to thaw as some better mortgage deals are coming onto the market. ”
The FTSE 350 housebuilders posted strong gains in the fourth quarter, but there was little reaction.
“However, the data has not moved much for housebuilders’ share prices in early trading, which have already seen strong gains in recent months on rising interest rate cut expectations, but for the outlook for the UK economy. There is still uncertainty.”
