by THO
(Bloomberg) — Asking prices for UK homes jumped by the most in over one-and-a-half years at the start of 2025, a sign of resilient confidence in the property market, according to Rightmove.
The online property website said the average price for a property put on the market climbed by 1.7% to £366,189 in January, rebounding from seasonal drops in November and December. It was the biggest rise for a January since 2020 and largest for any month since May 2023.
Rightmove also said there had been a record number of new sellers putting their homes on the market since Boxing Day, as Dec. 26 is known in the UK. Some market commentators have predicted a rush of home sales before stamp duty, a tax on property transactions, increases in April due to lower thresholds.
The figures suggest that sellers remain confident despite buyers being stretched by mortgage rates creeping higher since the UK budget in October. It comes despite Halifax data earlier this month showing prices dropped for the first time in nine months in December.
Borrowing costs for homebuyers have risen further after the turmoil in UK markets since the start of the year. Moneyfacts data showed that the average two-year fixed mortgage rate has climbed to 5.52%, up from 5.39% before the the Labour government’s October budget dampened expectations for interest rate cuts by the Bank of England in 2025.
“As we step into 2025, the housing market is already showing signs of robust activity, with demand from buyers increasing year on year,” said Matt Smith, mortgage expert at Rightmove.
Rightmove said that the number of properties coming to market is up 11% on a year ago, though it cautioned that a competitive market may mean some sellers are too optimistic with their initial pricing.
“Sellers are responding to the strong buyer demand and stable property prices, taking advantage of an opportune moment to list their homes,” said Smith.
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