Buyers have more homes to choose from, interest rates are set to fall, and sellers will have to be more realistic regards pricing.

At least that’s the findings of the latest Rightmove report which reveals there are 11% more properties coming to market than at the same time last year. In fact, the number of properties listed for sale in estate agencies is the highest it’s been for more than a decade. The figures refer to January 2025.

Another plus for buyers is that, at £366,189, the average property value is now around 9% less than it was in May last year (when it was a record-breaking £375,131). Rightmove anticipates house prices will rise by 4% this year. 

Hopes that mortgage interest rates may reduce throughout the year were boosted by a fall in inflation to 2.5% in November. Interest rates for a typical two-year fixed rate deal is currently sitting around 4.97%. For five-year deals it’s roughly 4.75%.

A spokesperson for Rightmove commented: “We’ve also seen a strong start to the year in new seller asking prices, though given the higher-than-anticipated seller competition, we would expect this to slow down over the next few months.”

Nationwide report gives glimmer of hope for first-time buyers

Meanwhile, a new report by Nationwide shows that property has become more affordable. Based on last year, the data found that a first-time buyer with a 20% deposit needs to typically allocate 36% of their take-home pay to the mortgage. Although the percentage allocation fell last year, it’s still higher than the traditional 30%.

An increase in the cost of living, added to a rise in the cost of renting makes it increasingly difficult for first-time buyers to save for a deposit – to the extent nearly half (40%) reveal they received financial help from family and friends. Around 54% of property transactions carried out last year were for first-time buyers.

But Yopa’s CEO Verona Frankish said only an increase in construction will really make the difference to affordability – for all sectors of society.

“We need to see the government deliver on its promises of building more homes if any meaningful progress is to be made with respect to addressing housing affordability across the nation,” she concluded.