Rightmove issues £5,297 message to people who have a mortgage

Newly-marketed house prices have jumped by £5k on average this month – as Rightmove finds the property market is moving through the gears. “We now seem to be past the bottom of the market,” according to a property website Rightmove.

Across Britain, the typical price tag on a home increased by 1.5 per cent or £5,279. The increase pushed the average asking price to £368,118 and Rightmove said the month-on-month rise was higher than the usual 1.0 per cent average seen in March.

The average asking price is still sitting £4,776 below a peak seen in May 2023. Tim Bannister, Rightmove’s director of property science, said: “March is typically a strong month for asking price growth, as both buyer and seller activity levels rise and the spring selling season gets under way.

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“However, the stronger-than-usual price growth this March indicates that new sellers are feeling much more confident, with some perhaps being overoptimistic, that there is enough buyer activity and affordability in their local market to achieve a higher price.

“Despite the above-average price increases in this opening three months of the year, asking prices are still £4,776 below their peak in May 2023. For those who can afford to buy and have yet to take action to move this year, this may provide a window of opportunity to buy as we now seem to be past the bottom of the market.

“While some sellers are still being overoptimistic with their pricing expectations, there are also more sellers who are aware of the need to be negotiable and realistic, with elevated interest rates compared to recent years still stretching affordability for many buyers.”

Mr Bannister added: “Sellers are right to feel more confident and optimistic this year, but buyer affordability remains stretched and higher mortgage rates are an ongoing challenge. With the market still sensitive to pricing and external events, some caution and willingness to negotiate is advised for sellers who are keen to find a buyer in the spring market.”