New Year jump for house prices is biggest January rise since Covid pandemic, data shows

• House prices have had their biggest January jump since before the pandemic
• Data has also revealed a surge in homeowners requesting valuations 
• But the number of homes for sale currently remains ‘well below’ historical levels

House prices have enjoyed their biggest January jump since before the pandemic, rising 0.9 per cent.

Rightmove data showed that compared with December average asking prices increased by £3,301 to £362,438 after two months of prices falling. The online estate agent hailed an ‘encouraging start to the year’ for homeowners, although average asking prices are still £8,720 lower than their peak last October.

The data also revealed a surge in homeowners asking for valuations – typically the first step for sellers. Rightmove said January 5 was the third busiest day for valuation requests on record, with last week the busiest since August.

 While house prices have enjoyed their biggest jump since before the pandemic, the number of homes for sale currently remains ‘well below’ historical levels (file image)

But even with the rush of new sellers coming to the market, the number of homes for sale remains ‘well below’ historical levels.

Tim Bannister, of Rightmove, said the findings ‘give reason for some positivity’, with a post-Christmas bounce back under way. He added: ‘The early-bird sellers who are already on the market and have priced correctly are likely to reap the benefits of the bounce in buyer activity, while over-valuing sellers may get caught out as property stock builds.’  

As markets recover from Liz Truss and Kwasi Kwarteng’s disastrous so-called mini budget, average monthly mortgage payments for first-time buyers have continued falling.

Hard-pressed buyers can now find deals charging interest rates below 5 per cent and Rightmove said if rates continue easing more buyers will enter the market.

Bannister said the findings ‘give reason for some positivity’ to start the year, with a post-Christmas bounce back underway.

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