The average price of new property entering the housing market increased by 0.8% in March, the latest Rightmove House Price Index has revealed.

This added £2,906 to the month’s average of £365,357.

However, Rightmove highlighted that the latest growth is below the average monthly rise of 1.0% seen in March over the last 20 years, which it suggested reflects a higher degree of pricing caution by many new sellers than is usually seen at this time of year.

According to the latest index, the exception to this caution is a 1.2% monthly price jump in the “larger home top-of-the-ladder sector”, in contrast to more modest 0.4% and 0.5% respective rises in the first-time buyer and second-stepper sector categories.

Overall, new seller asking prices are now £5,800 below the peak recorded in October last year, with annual price growth continuing to slow and now sitting at 3.0%. Rightmove said it data is continuing to point to a market on a “much more stable footing” than many experts anticipated, as well one that is “cautiously transitioning” towards the activity levels of the more normal market of 2019.

“The beginning of the spring season sees stability and confidence continuing to return to the market as it recovers from the turbulence at the end of 2022,” said Rightmove director of property science, Tim Bannister.

“The pace of the market reached an unsustainable level in the last two years, and was on track to slow to a more normal level, though the speed of this slowdown to more normality was accelerated by the reaction to September’s mini-Budget.

“While higher mortgage rates and economic headwinds raise challenges, many potential home movers who were effectively side-lined in the frenetic bidding wars of the last two years will find that a slower-paced market gives them time to plan and secure their next move as we enter the traditionally busy spring-buying season.”

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