Asking prices on homes up for sale have increased for the first time since July as lower mortgage rates boost confidence in the market.
The average price of a new property listed on Rightmove so far this month was 0.1pc higher than a year ago, the property portal said, marking the first annual increase since last summer.
Average prices are 0.9pc above where they were in December. With the typical new listing priced at £362,839, it means the average asking price has increased by more than £3,000 since Christmas.
Optimism is increasing as mortgage rates retreat from the highs seen last year and amid hopes that interest rates may soon start falling.
The average two-year fixed rate mortgage on offer now comes with an interest rate of 5.56pc, according to Moneyfacts, down from 6.85pc in August.
Similarly, a typical five-year deal now costs homebuyers 5.18pc, down from 6.37pc last summer.
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