The average price of property coming to the market for sale climbed by 0.9% in January, new data from Rightmove has indicated.

This reversed two consecutive months of falls after the average price climbed by £3,301 to £362,438.

While a rise in asking prices is expected in January, the latest data showed that this is the highest at this time of year since January 2020.

After the market’s uncertain final few months of 2022, Rightmove suggested that the “familiar seasonality” is an early sign of stability, with new sellers feeling confident to test the housing market, albeit at average asking prices that are 2% below the record set last October.

Rightmove director of property science, Tim Bannister, commented: “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.

“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.”

Rightmove also reported that the beginning of 2023 has seen buyer demand up by 4% compared with the same period in the last “normal” pre-pandemic market of 2019.

The property expert suggested the latest bounce-back in activity was bigger than usual this year, following an “extended year-end lull”.

Furthermore, the number of prospective buyers sending an enquiry to an estate agent about a property for sale jumped by 55% in the last two weeks, compared with the previous two weeks, an indicator of pent-up demand. In recent years, this New Year jump in enquiries has been around 45%, and it was last higher than this in 2016, which Rightmove also said could indicate a positive sign for the year ahead.

“These statistics based on the largest sample of any UK housing report give reasons for some positivity at the beginning of 2023,” Bannister added. “Given that the pause for Christmas came unexpectedly early last year, it was important to see whether buyers and sellers would pick up their plans again at the beginning of this year, or wait to see what the first few months might bring.

“The numbers certainly suggest that activity has bounced back after Christmas and agents will now be busy trying to match the likely revised expectations of buyers and sellers as we move towards the important spring season.”

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