UK house buyers benefited from the highest number of sellers at the start of a year since 2015, as prices rose at their fastest early-year pace since before the pandemic took hold, according to figures from property portal Rightmove PLC.

Average new seller asking prices in January rose 1.7% to £366,189 from £360,197 in December. It was the chunkiest growth in prices since 2020. Rightmove noted the jump still leaves the price nearly £9,000 below the record set in May, due to constraints on buyer affordability.

‘However, with a record number of early-bird new sellers coming to market from Boxing Day and into January, there seems to be pent-up demand to move,’ Rightmove said.

The number of new properties coming to market is 11% ahead of the same start of the year period last year. Rightmove said buyers had the ‘highest level of choice at the start of a year since 2015’.

Rightmove said it has recorded its busiest start to a year for mortgage In principle applications, further showing high buyer intent.

‘New sellers have started the year with a bang’, Rightmove analysts said.

The company noted future uncertainties in 2025, and expects ‘higher-than-anticipated seller competition’ to slow down in the coming months.

The pace and number of interest rate cuts remains unclear, the firm said. There will also be an impact from the stamp duty change on March 31. After that date, first-time buyers will not pay stamp duty on houses worth up to £300,000, the nil-rate lowered from £425,000.

Rightmove said mortgage rates remain sticky, with its weekly mortgage tracker showing the average five-year fixed mortgage rate is 4.75%, down only slightly from 4.78% year-on-year.

‘It’s important to look at the bigger market picture, despite the positive early lead indicators that we’re seeing. Many buyers are still affordability-stretched, with high mortgage rates restricting borrowing power and limiting what they can afford to pay. Meanwhile, first-time buyers have seen support schemes reduce and some also face higher stamp duty fees from April, all while contending with record rents and trying to save up for a deposit,’ Rightmove analyst Colleen Babcock said.

Rightmove mortgage analyst Matt Smith said there continues to be uncertainty around bank rate cuts.

‘News of high government borrowing costs was swiftly followed by better-than-expected inflation figures, highlighting how quickly the mood can change.’

‘The markets are still banking on a cut in February, but after that it becomes uncertain. I think we’ll need to get settled into the year a little more before the direction of travel for rates this year becomes clearer,’ Smith said.

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