The common price of a house within the UK rose by solely £14 this month because the housing market entered a interval of “higher realism” on worth.

Figures from Rightmove, the property web site, counsel the common home worth within the UK is £362,452, up 3.9 per cent from final yr.

Costs for newly listed houses remained flat between January and February, whereas curiosity from consumers was up 11 per cent in contrast with the identical interval in 2019, earlier than the pandemic struck, the figures confirmed.

Home costs normally rise at first of a calendar yr as extra houses enter the market and sellers attempt to bid up in expectation of upper demand.

Tim Bannister from Rightmove mentioned that the figures confirmed that many sellers have been breaking with custom and exhibiting unseasonal preliminary pricing restraint. “Market circumstances are demanding higher realism on worth and we’re transitioning right into a slower-paced market, the place consumers will take longer to search out the precise property on the proper worth as a result of increased price of servicing a mortgage,” he mentioned.

The housing market continues to be anticipated to decelerate considerably on account of rising borrowing prices and a slowing financial system. This yr is predicted to register the largest drop in home costs for the reason that monetary disaster.

Mortgage charges have stabilised after the lending market was thrown into turmoil following final September’s mini-budget, which led to a whole bunch of mortgage provides being withdrawn. Rightmove mentioned the price of a median five-year fastened mortgage with a 15 per cent deposit had fallen to 4.82 per cent from 5.9 per cent in October.

The Financial institution of England is predicted to lift rates of interest by 0.25 share factors subsequent month after which deliver a halt to its tightening after greater than a yr of elevating borrowing prices. Falling inflation and steadily rising unemployment are prone to imply the Financial institution will maintain off on additional fee rises after March, based on cash market predictions that anticipate charges to stay at 4.25 per cent for many of the yr.

Rightmove’s figures counsel that first-time consumers have shrugged off the mini-budget turmoil with general gross sales down solely 7 per cent on 2019 ranges, whereas whole residence gross sales are nonetheless 11 per cent under pre-pandemic ranges.

“This means that although the first-time purchaser sector has been hardest hit when it comes to the variety of consumers inquiring, those that are out there and capable of transfer are motivated to agree a purchase order, pushed partially by excessive and growing rents, and a continued need to personal their very own residence,” Rightmove mentioned.

Gross sales of the most costly houses are down 16 per cent within the first two weeks of February in contrast with the identical time in 2019. The common worth of “prime of the ladder” houses, which excludes costs in central London, dipped 0.8 per cent between January and February to £650,755. Bannister mentioned the housing market was transferring in direction of a “extra regular stage of exercise” after surging demand throughout Covid-19 lockdowns and the panic launched by the Liz Truss authorities.