The New Year’s jump in house prices is the biggest rise in January since the Covid pandemic, data show

House prices saw their biggest January jump since before the pandemic, rising 0.9 percent.

Rightmove data showed average asking prices rose by £3,301 compared to December to £362,438 after two months of falling prices. The online estate agent hailed an “encouraging start to the year” for homeowners, although average asking prices are still £8,720 below their peak last October.

The data also showed a surge in homeowners asking for reviews — typically the first step for sellers. According to Rightmove, Jan. 5 was the third busiest day for review requests since records began, with last week being the busiest since August.

While home prices have seen their biggest jump since before the pandemic, the number of homes for sale currently remains “well below” historical levels (file image).

But even with the rush of new sellers entering the market, the number of homes for sale remains “well below” historical levels.

Rightmove’s Tim Bannister said the results “give cause for some positivity” as a post-Christmas recovery is underway. He added, “Those early-bird sellers who are already in the market and priced correctly are likely to benefit from the rebound in buyer activity, while overpriced sellers may be caught off guard as the property inventory builds up.”

As markets recover from Liz Truss and Kwasi Kwarteng’s disastrous so-called mini-budget, average monthly mortgage payments for first-time buyers have continued to fall.

Troubled buyers can now find deals charging interest rates below 5 percent, and Rightmove said if rates continue to fall, more buyers will enter the market.

Bannister said the results “give grounds for some positivity” to start the year as a post-Christmas recovery is underway.