UK Home Asking Prices Rise 0.7% in September
Average UK asking prices climbed to £367,440 in September, marking the first monthly increase since May despite high inventory levels.
Key points
- Average UK asking prices increased by 0.7% in September to £367,440, the first monthly rise since May.
- Homes for sale are at a 12-year high, with 61% nationally finding a buyer despite affordability issues.
- Fixed mortgage rates have risen recently, adding pressure to buyer budgets and market confidence.
Average UK asking prices rose by 0.7% in September to reach £367,440. This marks the first monthly increase in home values since May, indicating a potential seasonal rebound.
The uplift exceeds the ten-year September average of 0.5%, suggesting stronger than usual buyer activity. However, prices remain 0.8% lower than they were at the same time last year.
Market activity remains subdued
Rightmove reports that summer heatwaves and the World Cup suppressed buyer interest. Consequently, the market experienced a quieter period than typical, delaying some transactions until autumn.
Sellers face a crowded market with inventory at a 12-year high for this time of year. Buyer demand is currently below levels seen in September of the previous year due to affordability constraints.
Mortgage costs pressure buyers
The Bank of England held interest rates steady at 3.75% last week. Despite this pause, average fixed mortgage rates have continued to rise due to increasing swap rates.
Finance experts note that rising borrowing costs make buyers more cautious and price-sensitive. This volatility in mortgage markets creates significant challenges for those attempting to secure financing.
Regional success rates vary
Nationally, 61% of listed homes find a buyer, a rate that varies significantly by location. Scotland achieves a 91% success rate, while London sees only 42% of listings sold.
Data from chelmsfordweeklynews.co.uk highlights that 74% of homes sold this year were priced correctly initially. Sellers who set realistic prices are more likely to succeed in this competitive environment.
