Asking prices rise 0.7% but experts urge caution over 'major turning point'

Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Asking prices rise 0.7% but experts urge caution over 'major turning point'

The average newly listed asking price in Great Britain rose by 0.7% to £367,440 in September, the first price increase since May. However, prices remain 0.8% lower than a year ago and 2.3% below the level recorded at the start of summer.

Despite the seasonal pick-up in activity, buyer demand was 9% lower than at the same time last year, and sales agreed were also down 9% year-on-year. The number of homes available for sale now stands at a 12-year high, in what has been described as a "crowded market".

Modest recovery, not a turning point

Colleen Babcock, property expert at Rightmove, said September's above-average price rise is a welcome sign of confidence after a particularly subdued summer, but should be viewed as a modest recovery rather than a major turning point. She noted that property prices have largely underperformed against the long-term average this year, with September an exception, and that sellers face stiff competition from the 12-year-high number of homes for sale.

Regional picture: north outperforms

Scotland topped the growth tables, recording the largest monthly increase in the UK at 3.8% and the strongest annual growth at 4.2%, along with the fastest sales market at an average of just 33 days to find a buyer.

The North East saw annual growth of 2.7% to £199,973, while the North West grew 1.7% year-on-year to £274,774. Both were the quickest English markets to secure buyers, at 55 and 57 days respectively.

London posted a reasonably strong 1.8% monthly rise, the second-highest after Scotland, but annual prices remained 2.6% lower at £657,775. The capital also took an average of 78 days to find a buyer, the slowest market in Great Britain.

Affordability pressures persist

Areas with average asking prices below £300,000 were generally continuing to record annual growth.

Jeremy Leaf, estate agent and former RICS residential chair, said he was witnessing continued affordability pressures, prompted by rising inflation and mortgage rates, as well as uncertainty ahead of next month's Budget.

Ian Harris, President of NAEA Propertymark, commented that a slower market can provide greater choice and more time over a purchase, but affordability remains central to what buyers can realistically achieve.

For letting agents and inventory clerks, high stock levels, subdued buyer demand and ongoing affordability pressures mean pricing strategy and realistic valuations remain critical heading into autumn.