UK house prices have risen for the first time in several months, with the average asking price increasing by 0.7% in September.
Rightmove reported that sellers added an average of £2,441 to their asking prices, taking the typical price of a property coming to market to £367,440.
The increase is slightly above the usual September rise of 0.5% recorded over the past decade. The month often brings renewed activity as buyers return after the summer holidays.
This year could see a stronger seasonal recovery after a quieter summer. Heatwaves and the World Cup contributed to weaker market activity during the summer months.
However, prices remain 0.8% below the level seen a year ago. They are also 2.3% lower than at the beginning of summer.
Sellers Face Strong Competition
Despite the rise in asking prices, sellers continue to operate in a competitive market.
The number of homes available for sale has reached its highest level for this time of year in 12 years. This gives buyers more choice while affordability remains a challenge.
Buyer demand is also below last year’s level. Rising mortgage rates are adding further pressure for those looking to move.
The Bank of England recently left interest rates at 3.75%. However, fixed mortgage rates have continued to rise as financial markets have adjusted their expectations around future interest rates.
This is likely to keep buyers cautious and focused on price when considering properties.
Pricing Could Be Key
Rightmove said sellers need to be realistic about their asking prices if they want to attract buyers.
Its analysis found that 74% of homes sold this year were priced correctly from the start and did not require a later reduction.
There are also significant differences across the UK.
Scotland has recorded the highest proportion of homes finding buyers, at 91%. In the North West, 71% of properties are finding a buyer.
The figure falls to 56% in the South East and just 42% in London.
This shows how much local market conditions can affect a seller’s chances of completing a sale.
Autumn Brings Fresh Activity
The return of buyers after the summer period has provided some encouragement for the market.
The start of the new school year and the end of the holiday season typically bring more people back into the property market.
However, higher mortgage costs and stretched affordability could limit how much activity increases over the coming months.
With plenty of properties available, buyers are in a position to compare their options carefully.
For sellers, setting the right asking price from the outset could therefore be particularly important.
The September increase provides an early sign of stronger autumn activity, but the market remains sensitive to mortgage costs, affordability and the large amount of housing available for sale.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property