Promising start to 2025 as asking prices bounce back

The average price of property coming to the market for sale has risen by 1.7% this month (+£5,992) to £366,189, as revealed by Rightmove’s latest index. This is the largest monthly jump in prices at the start of the year since 2020, as new seller asking prices bounce back from the usual seasonal fall in December and begin 2025 with some new year optimism.

Average asking prices are still £8,942 below the peak recorded in May 2024, reflecting buyer affordability constraints. The number of new properties coming to market is 11% ahead of the same period at the start of last year, while the average number of homes for sale per estate agency branch is currently at its highest for this time of year in 10 years.

High buyer choice has contributed to increases in buyer enquiries and sales agreed compared to a year ago. However, it also means fierce seller competition to attract these new year buyers. Some sellers may find that they have been too optimistic with their initial pricing and risk being left on the shelf in favour of more competitively priced neighbours.

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