The average asking price of a home in Britain increased by just over £1,500 in September as the property market entered its busy autumn period, according to figures from Rightmove.
Across the country, new sellers are now typically marketing their homes at £370,257. This represents a 0.4% monthly rise, equivalent to £1,517, as activity in the housing sector picked up after the summer lull.
Despite this increase, asking prices remain slightly below where they were last year. On an annual basis, the average is 0.1% lower, down by £502 compared with September 2023. Rightmove noted that this is the first annual decline in asking prices since January 2024.
The property website explained that sellers had been competing more aggressively over the summer months, cutting prices in order to secure deals. As a result, agreed sales are now 4% higher than they were a year ago.
Regional differences remain clear, with London and the South of England continuing to underperform compared with the rest of the country. Rightmove highlighted that these areas are largely responsible for dragging down the national average.
For example, in the South West, prices are 1.3% lower than last year, while the North West has seen values rise by 3.2%. This north-south divide reflects the tougher competition faced by sellers in southern markets.
Stock levels are also adding to the pressure in the South. The number of homes listed for sale has increased by 9% compared with this time last year, significantly higher than the 2% rise seen across the rest of Britain.
As a result, it now takes sellers in the South about five days longer on average to secure a buyer compared with those in the North of England and Wales.
Nevertheless, demand remains solid. Sales volumes in the South are still ahead of last year, suggesting that buyers are willing to act quickly when they find a fairly priced property.
Rightmove’s property expert, Colleen Babcock, commented that September usually brings a lift in asking prices as families return from summer holidays and plan moves before Christmas. This year’s 0.4% rise, she said, was slightly below the long-term average of 0.6% for September.
She pointed out that prices have now edged below last year’s levels due to competitive summer pricing, with the South of England being the main driver of this trend. However, she added that sensible pricing by sellers had helped boost sales activity, supported by static house prices, higher wages, and lower mortgage rates improving affordability.
Babcock also noted that speculation around potential property tax changes could be influencing behaviour. Rumours began circulating in mid-August, but with the Budget not due until late November, the uncertainty may be causing some buyers—particularly those looking at higher-value homes—to pause their decisions.
Matt Smith, Rightmove’s mortgage expert, said rates have edged upwards recently due to global pressures, making borrowing slightly more expensive. However, he highlighted that lenders are continuing to explore ways to improve affordability, which could especially benefit first-time buyers.
Elsewhere, estate agent Matt Giggs, founder of the Giggs Group in Cambridgeshire, said sellers who adjusted their pricing expectations over the summer had helped keep the market moving. He reported that well-presented, competitively priced homes continue to generate strong interest in his region, with buyers encouraged by a wide choice of properties.
Matt Thompson, head of sales at Chestertons in London, added that some boroughs in the capital have not experienced the growth typically associated with a global city. While this has required buyers and sellers to adapt, it has also created opportunities for some buyers to secure homes that were previously out of reach.
He said that since the end of the summer holidays, Chestertons has already seen an increase in enquiries from buyers who view the current climate as a chance to purchase before conditions change. However, others are holding back until after the autumn Budget in the hope of greater clarity.
Alongside the housing market update, new rental data from Hamptons showed that newly agreed rents fell by 0.4% year-on-year in August, equivalent to around £6 a month. The average rent on a newly let home now stands at £1,387.
Although this marks a slowdown, rents remain significantly higher than inflation over the longer term. Hamptons calculated that if rents had tracked inflation over the past five years, tenants would now be paying about £1,308 a month, saving around £950 annually. Over ten years, the difference would be even greater, at more than £1,600 in annual savings.
While the supply of rental homes has lagged pre-pandemic levels for much of the past five years, Hamptons said the gap is now narrowing. Aneisha Beveridge, the firm’s head of research, said the market is showing signs of recalibrating after years of steep rises.
She explained that affordability pressures and softer demand are forcing landlords to adjust their expectations, even though rents remain elevated compared with inflation. According to Beveridge, this reflects both rising costs for landlords and a gradual shift towards greater balance in the rental market.
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