House prices rose by £3,000 on average this month as the spring selling season gets underway and the market continuously seems to avoid a forecasted slump.
Asking prices were up by 0.8%, or £2,906, according to property website Rightmove PLC (LSE:RMV), with average mortgage rates now falling to 4.65%, after having peaked at 5.89% in October.
“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,” Rightmove property science director Tim Bannister said.
Rightmove added that first-time buyer properties had “lead the recovery,” with sales sitting just 4% behind 2019’s pre-pandemic levels, likely driven by people who are supported by family or were able to avoid higher rents over the past few months.
Larger homes were “lagging behind” though, with sales 10% lower, potentially due to higher living costs and fears over the price of running bigger properties, Bannister hinted.
House prices had stagnated in February, rising by just £14 on average, after a 0.9% rise in January, though November and December had seen falls of 1.1% and 2.1% respectively.
Bannister explained that the slowdown late last year had been worsened by ex-chancellor Kwasi Kwarteng’s mini-budget, which had showered the market in doubt, though the stagnation has appealed to prospective first-timers.
“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,” he said.