Average asking prices have risen for the first time since May as the housing market shows early signs of its traditional autumn bounce but sellers face the highest level of competition in 12 years.
Rightmove says the average price of a newly-listed home has increased by 0.7%, or £2,441, this month to £367,440.
The increase is slightly ahead of the 10-year September average of 0.5%, as buyers and sellers return to the market following a subdued summer.
However, asking prices remain 0.8% below this time last year and 2.3% lower than at the start of the summer, while the number of homes available to buy is at a 12-year high for the time of year.
CROWDED MARKET
Buyer activity has increased between August and September, but the number of buyers making enquiries remains 9% lower than a year ago.
New listings are 3% lower annually, while the number of sales being agreed is also down 9%.
Rightmove says the combination of high overall stock and weaker sales points to a particularly price-sensitive market.
Colleen Babcock (main picture, inset), Property Expert at Rightmove, says: “September’s above-average price rise is a welcome sign of confidence after a particularly subdued summer, but it should be viewed as a modest recovery rather than a major turning point.
“Property prices have largely underperformed against the long-term average this year, but September is an exception. While buyers and sellers are returning to the market after the summer holidays to potentially fuel an Autumn bounce, sellers face stiff competition from a 12-year high number of other homes for sale.
“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.”
CHANCES OF SELLING
Rightmove says 61% of homes coming to market currently find a buyer, compared with 74% during the much stronger market of 2021.
But the likelihood of securing a buyer varies significantly around Great Britain.
In Scotland, 91% of homes coming to market find a buyer, compared with just 42% in London.
The figure stands at 71% in the North West, where lower property prices help affordability, compared with 56% in the South East.
Rightmove’s analysis also shows 74% of homes sold so far this year were priced correctly initially and did not subsequently require an asking-price reduction.
Babcock adds: “It’s encouraging to see more buyers returning to the market as we move into Autumn, with activity picking up as usual after a subdued summer.
“Whilst almost two-thirds of homes are still successfully finding a buyer, the chances of selling vary significantly depending on where you live. Over 90% of homes that come to market for sale are selling in Scotland versus less than half in London, meaning those who want to sell will have to set their pricing according to local market conditions.
“Buyers continue to have plenty of choice and mortgage rates are increasing, so competitive pricing is still the biggest factor in attracting interest and securing a sale. Sellers who get the initial asking price right are giving themselves the best chance of standing out in a crowded market.”
SEVEN-MONTH MOVE
Sellers are currently taking an average of 64 days to find a buyer and a further 150 days to complete their transaction.
That means the average moving process is taking around seven months, leaving sellers entering the market now potentially facing a completion after Easter next year unless they beat those averages.
Affordability is also coming under renewed pressure from mortgage rates.
Rightmove says the average two-year fixed mortgage rate has risen from 5.09% last month to 5.29%, compared with 4.25% before the conflict in Iran began at the end of February.
It calculates that the average monthly payment on a new mortgage is now around £180 higher than before the conflict.
Matt Smith, Rightmove’s Mortgage Expert, says: “This month’s traditional uplift in buyer activity shows there’s still a strong underlying desire to move, but volatility in mortgage rates remains a significant challenge for many.
“Mortgage rates have risen again over the past month, adding further pressure to monthly budgets, and the uncertainty over what may happen to rates in the medium term is likely holding back some potential movers.
“There remains a good volume and range of mortgage products available to support borrowers across different deposit sizes, and although rate rises are never a good thing for buyers, they are at least more accustomed to elevated mortgage rates than a few years ago. Understanding your own personal affordability and how far you can stretch is really important in the current market.”
INDUSTRY REACTION
Kevin James, Managing Director at Bradleys Estate Agents in the South West, says: “The summer months delivered better activity than expected in our areas, particularly for sellers who adapted their expectations to the affordability pressures in the market, and listened to advice to price realistically.
“As families now return from their holidays and the new school year begins, we’re seeing the traditional Autumn uplift in demand.
“With more homes available in the South West than at this time last year, buyers have greater choice. However, realistic pricing is critical, and strong presentation is also increasingly important.
“Higher mortgage rates continue to influence affordability, so sellers who price correctly from the outset or at least adapt swiftly are best positioned to secure a sale and achieve their move in 2026.”
PRESENTATION MATTERS
Marc von Grundherr, Director of Benham and Reeves, says: “Pricing correctly from day one is absolutely vital, particularly in London where buyers have a huge amount of choice and very little patience for homes that look over-ambitious on price.
“That can sometimes mean having a difficult conversation with a seller at the outset, but an experienced agent should be prepared to have it. Launch too high and you risk wasting the strongest period of buyer interest, only to reduce later once the property has already started to look stale.
“Price is only part of the equation. Presentation matters, flexibility around viewings matters and, above all, sellers need to listen to the feedback the market is giving them. Those who work closely with their agent and are prepared to react quickly will put themselves in a far stronger position to secure a buyer.
“Sensibly priced, well-presented homes should continue to attract attention through the remainder of the year, while those that miss the mark are likely to find the market far less forgiving.”
ASKING PRICES NOT SELLING PRICES
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, says: “After a quiet few months, the increase in viewings since the end of the summer holidays has meant sellers are more optimistic about their prospects of finding a buyer.
“However, asking prices are not selling prices. Rather, they are an aspirational starting point, which determine whether any interest is generated in a property.
“In our offices, affordability concerns remain, prompted by rising inflation and mortgage rates, as well as fear as to what might be in store in next month’s Budget.
“We are finding that only those sellers who understand the need for flexibility are receiving acceptable offers. Even then, the pace of sales is painfully slow bearing in mind the ample choice of property in most price ranges.”
LOOK BYOND THE HEADLINES
Ian Harris, President of NAEA Propertymark (National Association of Estate Agents), says: “The return of some seasonal momentum to the housing market is encouraging, but consumers should look beyond the headline increase in asking prices.
“With buyer demand still below last year’s level, a high number of properties available for sale and mortgage costs continuing to put pressure on affordability, the market remains highly sensitive to price.
“For sellers, this makes professional advice particularly valuable. An asking price needs to reflect what buyers are realistically able and willing to pay in that particular local market, rather than simply relying on what a property might have achieved in previous years. Getting that assessment right at the outset can help avoid a property sitting on the market for longer and subsequently requiring a price reduction.
“Buyers, meanwhile, should remember that a slower market can provide greater choice and more opportunity to take time over a purchase, but affordability remains central to what they can realistically achieve. With the buying and selling process taking several months from initial instruction through to completion, anyone planning a move this autumn should have a clear understanding of their finances and timescales.
“The significant variation in selling success across different parts of Great Britain also demonstrates that there is no single national housing market.
“Local conditions, property type, affordability and the balance between supply and demand can all have a material impact. This is why consumers benefit from working with a qualified property professional who understands the market in their area and can provide informed advice throughout the transaction.”
