Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Asking prices rise 0.7% in September but rate fears loom, says Rightmove
Average asking prices rose by 0.7% to £267,440 in the month to September, according to Rightmove — the first monthly increase since May. The rise is higher than the 0.5% increase recorded last September, which Rightmove says could be an early sign of an autumn bounce.
However, the portal cautions that there is "considerable ground to make up" after a subdued summer, and that the increase should be viewed as a modest recovery rather than a major turning point.
A crowded market
Sellers are facing what Rightmove describes as a "crowded market", with the number of homes listed for sale at a 12-year high. The number of newly listed properties is 3% lower than last September, suggesting homes are lingering on the market for longer.
Despite a post-summer rebound in buyer activity, enquiries are 9% lower than this time last year, and the number of sales agreed is also 9% down on last year.
Rightmove property expert Colleen Babcock said that with a large crowd of sellers chasing a smaller number of buyers, "realism on pricing or a high-quality finish are absolutely key to attracting a buyer and making a sale".
Rate rise warnings
Ryan Etchells, chief commercial officer at Together, said the monthly growth suggests the market may be more resilient than previously thought, but warned the increase could be "the final ray of light before a difficult winter". Although the Bank of England kept interest rates at 3.75% last week, he said the chances of multiple rate hikes in the coming months remain high, which could lead to falls in house prices.
Jeremy Leaf, a North London estate agent and former RICS residential chairman, said increased viewings since the end of the summer holidays have made sellers more optimistic, but stressed that "asking prices are not selling prices". He noted affordability concerns in his offices, prompted by rising inflation and mortgage rates, as well as uncertainty ahead of next month's Budget, and said only sellers who understand the need for flexibility are receiving acceptable offers.
What this means for agents
For letting agents and inventory clerks, the data points to a market where properties are taking longer to let or sell, with ample stock giving customers more choice. Accurate pricing advice and well-presented, high-quality property documentation will be key as the market heads into a potentially difficult winter.
Source: Mortgage Strategy