The 1.3% increase takes the average cost of a house to £359,748 – though this is still 0.7% lower than a year previously.
The property portal’s research also found the volume of homes newly going up for sale is 15% higher than 12 months ago.
Competitive pricing from sellers is still vital with the number of options becoming available outpacing an increase that is also being seen in buyer demand.
The number of potential buyers contacting estate agents about homes for sale in the first week of 2024 was 5% higher than in the same period in 2023.
Growth in activity is strongest in London and the North-East of England, Rightmove said.
It added that the number of sales being agreed as January gets under way has been higher than the start of last year.
Tim Bannister, Rightmove’s director of property science, said: “After a stop-start market in 2023, the initial signs suggest a smoother year for movers in 2024.
“More new sellers are now entering the market and with more confident pricing. While the increased level of buyer activity that we’re also seeing may justify some of this increased pricing confidence from sellers, it’s important that sellers don’t get carried away when setting their price expectations.
“Elevated mortgage rates and the wider cost-of-living squeeze are still limiting buyers’ spending power.
“Accurate and realistic pricing for their local area is the recipe for success for sellers looking to get moving in 2024.” The report also quoted the views of other estate agents. Chris Rowson, managing director at Sharman Quinney in Cambridgeshire, said: “Future sellers are getting their valuation appointments booked in, future buyers are inquiring and getting viewings booked in.
“We’re also seeing really high demand for mortgage appointments, as movers seek to understand their affordability and position.
“Most importantly, we’re seeing offers being made, and a high number at that. It is early days and not a time to get carried away, but we’ve had a good start.”
Paul Bayliss, from The Square Room estate agents on the Fylde Coast in Lancashire, said: “We’ve seen a lot of activity from first-time buyers now ready to make their move at the start of the year.
“And with mortgage rates more settled, we’re also starting to see upsizers return who are now more confident to take out a larger mortgage for a bigger home.
“The market is just getting started but we’re optimistic about what 2024 can bring.”
The report came as estate and lettings agent Hamptons said the average private rent on a newly-let property increased by 10.2% annually in December. That marks the strongest end-of-year annual growth since its records started in 2014.
The average monthly rent on a newly-let property last month was £1,340. The annual rise would have cost an average tenant who moved into a home £124 per month more – £1,488 a year.
Aneisha Beveridge, Hamptons’ research chief, said: “Pressures on the rental market show few signs of abating. Slightly lower mortgage rates in 2024 should take some of the heat out of the rental market but tenants will probably continue facing bigger rent increases than they did pre-Covid.”
