2014 starts with a bang for property prices

2014 starts with a bang for property prices

The latest market figures from Rightmove reveal what the firm describes as the strongest ever start to a new year for national average asking prices.

It said that this was an indicator that seller and estate agent optimism was rising, along with the number of properties coming to market and activity across Rightmove’s sites.

While January’s rise is limited to 1% (+£2406) it is a record for this time of year.

Rightmove also said that this meant average asking prices were 6.3% (+£14,432) higher than than a year ago.

It also marks the highest annual rate of increase since November 2007.

Rightmove director and housing market analyst Miles Shipside said: “The early statistics for any new year are keenly anticipated as they indicate the shape of things to come in the year ahead.

"With a very strong start in both the price of property coming to market and the number of people looking at what’s on the market, it suggests that the new year resolution for many is to make 2014 their year to move.”

He added: “This is the strongest start to a new year for house prices that Rightmove has ever recorded, and that will get some potential sellers salivating at the thought of better moving prospects.

"The sums have to stack up for most property owners before they will consider a sale; some will have to achieve a higher sales price to fund a move while others will have a figure in their heads that they’re not prepared to go below.

"With buyer demand on the up and price levels having hardened, the likelihood of finding a buyer at an acceptable price will be a potential boost to new seller numbers, especially for those trading up and needing a decent deposit to access more competitive mortgage rates.

"Help to Buy phase two will assist new supply further by helping to increase the availability of low-deposit mortgages for existing home-owners, finally enabling ‘trapped sellers’ to move.”