UK house asking costs present greatest early-year rise since 2020, Rightmove says

LONDON (Reuters) – Common asking costs for newly listed properties in Britain had their greatest start-of-the-year improve since 2020 however uncertainty concerning the tempo of rate of interest cuts is hanging over the market, property web site Rightmove (OTC:RTMVY) mentioned on Monday.

The common value of properties coming to market rose by 1.7% between Dec. 8 and Jan. 11 to 366,189 kilos ($445,944), 9,000 kilos beneath a peak hit in Might final yr, Rightmove mentioned.

In contrast with the identical interval a yr in the past, asking costs had been 1.8% increased, it mentioned.

Britain’s housing market gained some momentum final yr on hopes that borrowing prices would proceed their fall though slower-than-expected price cuts sapped some demand.

Rightmove mentioned the variety of new properties coming to market since Dec. 26 was up 11% from a yr earlier whereas the variety of patrons contacting brokers about properties on the market was 9% increased and agreed gross sales rose by 11%.

Colleen Babcock, head of companion advertising at Rightmove, mentioned regardless of the optimistic begin to the yr many patrons had been struggling to afford a brand new house as a consequence of excessive mortgage charges.

April’s expiry of a decrease price of property buy tax on cheaper properties represented one other check for patrons.

“The market wants a lift for that momentum to be sustained, within the type of early and ongoing Financial institution Fee cuts, which ought to hopefully assist to cut back mortgage charges,” Babcock mentioned.

The Financial institution of England is extensively anticipated to chop its benchmark Financial institution Fee from 4.75% to 4.5% on Feb. 6 after its subsequent scheduled financial coverage assembly.

($1 = 0.8212 kilos)