UK Asking Prices Rise 0.7% in September Despite High Supply
Average home asking prices increased by £2,441 in September. This marks the first monthly gain since May, though stock remains at a 12-year high.
Key points
- Average asking prices rose 0.7% in September to £367,440, the first monthly gain since May.
- Homes for sale hit a 12-year high, making the market challenging for sellers despite the price rise.
- Scotland sees a 91% sale rate, while London lags at 42% as affordability issues persist nationwide.
Average asking prices in Britain rose 0.7% in September. This represents a £2,441 increase month on month. It is the first positive reading since May.
The average price tag now stands at £367,440 across the country. Rightmove reported this data to Yahoo Finance UK. The gain exceeds the 0.5% ten-year average for September.
Supply Outpaces Buyer Demand
Homes available for sale reached a 12-year high for this period. Sellers face a crowded market with limited buyer activity. Affordability constraints continue to suppress purchase volumes significantly.
Typical prices remain 0.8% below levels seen a year ago. They are also 2.3% lower than at the start of summer. This indicates persistent downward pressure despite the recent uptick.
Regional Sale Rates Diverge
Nationally, 61% of listed homes find a buyer. Scotland leads with a 91% success rate. London trails significantly with only 42% of properties sold.
The North West of England records a 71% sale rate. The South East achieves 56% of listings sold. These differences reflect distinct local market dynamics and practices.
Mortgage Costs Limit Activity
Fixed mortgage rates have risen in recent weeks. This occurs despite the Bank of England holding rates at 3.75%. Rising swap rates drive the increase in lending costs.
Buyers remain cautious and price-sensitive in the coming months. High-quality finishes or realistic pricing are essential for sellers. Competition is intense due to the large inventory of homes.
