The average price of a house in the UK jumped by roughly £3,301 in January, following some dips in value to the end of 2022, according to property website Rightmove.

It found that the average asking price of a house in the UK is now £362,438, which is nearly 1% higher than in December.

However, January's rise in the value of newly marketed houses comes after two months of decline.

The average house price is now £8,720 lower than during the market's peak in October.

Rightmove also said that a rise in the first month of the year would be expected.

The Herald: PA - Average house prices increased by 0.9% this monthPA - Average house prices increased by 0.9% this month (Image: RADAR)


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Tim Bannister, Rightmove’s director of property science, said: “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.”

The property site also said that the number of prospective buyers sending enquires to estate agents has increased in recent weeks, a sign, it says, of 'pent-up demand'.

On January 5, the volume of buyers sending requests to property agents was the third largest Rightmove have ever seen.

Despite an increase in potential buyers, the number of available properties for sale is still below long-term norms.

Mr Bannister said: “We expect that the full effect of affordability constraints and last year’s mortgage rate rises will hold back some segments of the market in the first half of the year, but our leading market indicators may start to identify some green shoots of growth that will go on to strengthen in the second half of 2023.”