Economic Indicators

UK home asking prices show biggest early-year rise since 2020, Rightmove says

2025.01.19 19:28

LONDON (Reuters) – Average asking prices for newly listed homes in Britain had their biggest start-of-the-year increase since 2020 but uncertainty about the pace of interest rate cuts is hanging over the market, property website Rightmove (OTC:) said on Monday.

The average price of properties coming to market rose by 1.7% between Dec. 8 and Jan. 11 to 366,189 pounds ($445,944), 9,000 pounds below a peak hit in May last year, Rightmove said.

Compared with the same period a year ago, asking prices were 1.8% higher, it said.

Britain’s housing market gained some momentum last year on hopes that borrowing costs would continue their fall although slower-than-expected rate cuts sapped some demand.

Rightmove said the number of new properties coming to market since Dec. 26 was up 11% from a year earlier while the number of buyers contacting agents about properties for sale was 9% higher and agreed sales rose by 11%.

Colleen Babcock, head of partner marketing at Rightmove, said despite the positive start to the year many buyers were struggling to afford a new home due to high mortgage rates.

April’s expiry of a lower rate of property purchase tax on less expensive homes represented another test for buyers.

“The market needs a boost for that momentum to be sustained, in the form of early and ongoing Bank Rate cuts, which should hopefully help to reduce mortgage rates,” Babcock said.

© Reuters. FILE PHOTO: A rainbow is seen over apartments in Wandsworth on the River Thames as UK house prices continue to fall, in London, Britain, August 26, 2023.   REUTERS/Kevin Coombs/File Photo

The Bank of England is widely expected to cut its benchmark Bank Rate from 4.75% to 4.5% on Feb. 6 after its next scheduled monetary policy meeting.

($1 = 0.8212 pounds)



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