The price of newly listed homes rose by 0.5% in January after falling for three consecutive months, Rightmove’s House Price Index has revealed.
In the first week in February Rightmove saw visits rise by 45% year-on-year, with house hunters sending 18% more enquiries.
Marc von Grundherr, director of Benham and Reeves, said: “Many have been quick to jump on a consistent decline in asking prices in previous months as signs of the market running short on steam.
“However, even with the boost of a stamp duty holiday, the market is susceptible to the usual seasonal trends and so slower market conditions over the Christmas period and into January are certainly nothing new.”
One in five buyers who agreed a purchase in July last year have still not completed more than six months later.
James Forrester, managing director of Barrows and Forrester, said: “A few thousand saved in stamp duty isn’t the make or break cost of buying a home and so while many current homebuyers are likely to be disappointed come April, the market will continue to lift as buyers largely stick with their purchases.
“Looking at life after the stamp duty holiday, we can expect further government stimulus to help aid a quick economic recovery and it’s very likely we could see a negative interest rate push mortgage rates to sub 1%. As a result, the market revival that was initially spurred thanks to a stamp duty holiday should live on long after it has expired.”
This post has originally been featured in Property Wire.