The median asking cost for fresh UK listings climbed by £2,441 in September, landing at £367,440, which marked the primary month-to-month gain since May. This 0.7% increase represents a seasonal rise that exceeds the standard of 0.5% seen over the last ten years.
Autumn Market Rebound
Based on Rightmove, this upward movement points to an early signal of the standard autumn market rebound, even though it follows a string of monthly drops that have left costs 0.8% below last year and 2.3% under the summer start point.
Sellers re-entering the market face intense rivalry, with the full inventory of homes for sale hitting a 12-year peak. Buyer inquiries are down 9% compared to the identical interval final 12 months, whereas new entries are 3% decrease month-on-month and agreed gross sales have dropped 9% annually.
Colleen Babcock, a property specialist at Rightmove, stated: “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.”
Babcock added that home costs have largely lagged the long-term common this 12 months, with September being an exception. As buyers and sellers return after the summer season to drive an autumn bounce, sellers contend with robust competitors from a 12-year excessive stock of listings.
Selling success varies sharply by region, with 91% of listed properties promoting in Scotland, versus 56% in the South East and solely 42% in London. Babcock noted that 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.
Mortgage Rates Rise
The average two-year fixed mortgage rate has risen to 5.29%, up from 5.09% final month and 4.25% before the war in Iran began. The conflict has been a key driver of raised mortgage rates, and the average monthly payment on a new mortgage is now around £180 higher than it was before the war started.
Rightmove analysis reveals that 74% of homes sold so far this year were priced correctly at launch and required no subsequent reduction. It takes a median of 64 days from listing to find a buyer, followed by a further 150 days to reach completion.
Six in ten (61%) of properties currently on the market find a buyer overall, down from 74% in 2021. The total number of homes available to buy has reached a 12-year high, while buyer enquiries remain 9% lower than at the same point last year.
Regional Selling Success
In the North West of England, 71% of properties sell, compared to 56% in the South East and just 42% in London.
With no clear signs of an imminent resolution, financial markets remain unsettled, sustaining pressure on affordability for prospective buyers. Industry reaction includes comments from Marc von Grundherr, director of Benham and Reeves, and Ian Harris, president of NAEA Propertymark, who provide insight into the current market conditions and the importance of pricing and presentation for sellers.
