BUYER interest is on the rise, signalling the emergence of green shoots in the UK's property market.

House sales in the first six weeks of 2024 are 16 per cent higher than over the same period last year, and three per cent higher than pre-pandemic.

According to Rightmove, house prices rose by 0.9 per cent in February to £362k. In London, house prices remain the most expensive throughout the UK, with the cost of property up 2.8 per cent to £682k.

Average house prices are also up by 0.1 per cent compared to last year, following annual falls in every month since August 2023. There has also been an increase in activity of both buyers and sellers on Rightmove with seven per cent more new listings coming to market than last year and a seven per cent upturn in buyers enquiring.

Tim Bannister, Rightmove's director of property science, said: "Momentum to move is building, but prospective sellers mustn't get carried away.

"Buyers now have more choice of property for sale and many are still very price-sensitive, with mortgage rates remaining elevated. Sellers who are serious about moving would be well-advised to ride this wave of increased buyer confidence with an attractive asking price before any preelection jitters or unexpected events dampen the momentum."

Despite the UK tipping into a technical recession in the last three months of 2023, sentiment in the housing market has shown signs of steady improvement.

Mortgage rates have declined, in response to cooling inflation, however remain around three per cent higher than their December 2021 average of 2.34 per cent.

(c) 2024 City A.M., source Newspaper