The average price of property coming to the market for sale has increased by 0.9% this month, according to the latest Rightmove House Price Index.

January has seen an increase of £3,301 to an average asking price £362,438, following two months of falls.

Rightmove stated that while a rise in asking prices is expected in January, this is the highest at this time of year since January 2020.

The property expert added that after the market’s “uncertain” final few months of 2022, this familiar seasonality is a “tentative sign of stability”, with new sellers feeling confident to test the market, albeit at average asking prices that are 2% below October 2022’s record.

Rightmove’s latest index also revealed that the number of prospective buyers contacting agents is up 4% compared to the same period in 2019, and up by 55% compared with the two weeks before Christmas, the biggest New Year bounce since 2016 after the extended lull at the end of the year.

“The seasonal increase in new seller asking prices this January from December is particularly encouraging for movers who are looking for the reassurance of familiar trends and a calmer, more measured market after the rapidly changing and at times chaotic economic climate of the final few months of last year,” commented Rightmove director of property science, Tim Bannister.

“However, while average asking prices did rise in January, they are still £8,720 less than their peak in October.

“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 over the next few weeks and months, and they experience more competition from other better-priced sellers in their area.

“It will be important for the vast majority of sellers to remember that a drop in your asking price is likely not an actual loss compared with what you paid for it, only a failure to live up to aspirations. Listening to your estate agent’s advice about your hyper-local market and pricing right the first time can avoid a stale sale and the need for even greater reductions later.”

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