According to Reuters an industry survey, the prices of homes listed for sale in Britain have recorded their first annual increase in six months, driven by a strengthening demand from buyers, which adds to the signs of stabilization in the housing market. Rightmove, a prominent property website, announced on Monday that asking prices for homes rose by 0.1% in February compared to the previous year, marking the first annual uptick since August 2023.

Furthermore, prices saw a 0.9% increase from January, aligning closely with the 10-year average of a monthly 1.0% rise in February. After a period of deceleration, Britain’s property sector has shown signs of resurgence in recent months, spurred by a decrease in mortgage interest rates amid expectations of a Bank of England rate cut this year.

According to Rightmove, a measure of agreed sales in the first six weeks of 2024 surged by 16% compared to the previous year and was 3% higher than in 2019, before the onset of the coronavirus pandemic. Both properties entering the market and buyer enquiries increased by 7%.

Tim Bannister, Rightmove’s director of property science, expressed cautious optimism, citing still-elevated mortgage rates compared to historical levels. Despite the economy slipping into recession late last year, Bank of England officials have indicated a need for further evidence of easing inflation pressures before considering rate cuts.

“While the mortgage market has regained stability, there are indications that the scope for lenders to further reduce rates is diminishing, with rates likely to remain elevated in the near future,” Rightmove commented.