Asking prices rise for first time in four months, Rightmove reveals

Average asking prices have increased for the first time since May, Rightmove has revealed.

The portal’s latest House Price Index shows average newly-listed asking prices rise by 0.7% this month to £367,440.

Rightmove said September’s above-average price increase for the time of year is a possible early sign of the usual Autumn bounce in activity, although the portal highlights that the market remains behind.

Average asking prices were also still down 0.8% annually.

Property prices have largely underperformed against the long-term average this year, but September is an exception.”

Sellers still face a crowded market, with the number of homes available to purchase at a 12-year high, Rightmove said.

Meanwhile, the number of buyers enquiring across the market is still 9% lower than this time last year, new listings are down 3% annually and sales agreed are 9% lower.

Moving plans

The report sadly warns that it may be too late for buyers looking to move by Christmas. At present it takes on average around two months – at 64 days – for a seller to find a buyer, and a further five months – 150 days – to complete the move, with the entire moving process for a seller thus taking around seven months on average.

It means that most buyers can’t necessarily plan to move until after Easter.

The index also reveals research showing that on average a home that’s on the market for sale has a three out of five – at 61% – chance of successfully finding a buyer. Itcompares to a nearly three-quarters chance at 74% – in 2021.

There are regional differences. In Scotland, nine out of 10 – at 91% – of homes for sale are currently finding a buyer, which is partly due to the greatly different buying and selling laws and practices.

In North West of England, where lower prices aid affordability, 71% of homes find a buyer, versus 56% in the more expensive South East. In London, where affordability is the most stretched and there is a larger mismatch between supply and demand, the equivalent figure is only 42%.

September’s above-average price rise is a welcome sign of confidence after a particularly subdued summer.”

Colleen Babcock (pictured), 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.”

Industry reaction

Tomer Aboody, founding director of specialist lender MT Finance, says: “It is good news for prospective purchasers that the number of homes for sale at a 12-year high.

“But with the number of buyer enquiries down 9& on last year, higher borrowing costs and yet more uncertainty with a new Prime Minister, Chancellor and another Budget where more tax rises are expected, are acting as deterrents.

“What is desperately needed is some market stimulus, ideally via stamp duty reform, to encourage more transactions. These are good not only for the health of the market but the wider economy.”

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.”

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.”