UK House Prices Rise 0.7% in September, Beating the Decade Average
Average asking prices climbed by £2,441 in September, marking the first month-on-month increase since May.
Key points
- UK average asking prices rose 0.7 percent in September to reach £367,440.
- Homes for sale reached a twelve-year high, complicating the seller's market.
- Only 42 percent of homes in London found a buyer, compared to 91 percent in Scotland.
Average asking prices in the UK rose by 0.7 percent in September. This marks the first month-on-month increase since May, signaling a potential autumn rebound.
The national average asking price reached £367,440. Rightmove reported that this rise exceeds the typical 0.5 percent seasonal increase for the month.
Summer lull fuels autumn demand
A quiet summer allowed buyer interest to build for the autumn period. Heatwaves and the World Cup suppressed activity earlier this year, creating conditions for a sharper rebound now.
Average prices remain 0.8 percent below their level from a year ago. They are also 2.3 percent lower than levels recorded at the start of the summer.
Seller competition hits twelve-year high
The number of homes available for sale reached a twelve-year high. This crowded market makes it difficult for sellers to secure a buyer quickly.
Only 61 percent of listed homes find a buyer nationally. In London, that figure drops to 42 percent, while Scotland sees a 91 percent success rate.
Mortgage rates pressure buyer budgets
Fixed mortgage rates have increased recently despite the Bank of England holding rates at 3.75 percent. Swap rate movements drive these pricing changes in the financial markets.
Buyers remain cautious and price-sensitive due to affordability constraints. Rightmove notes that 74 percent of homes sold this year required no initial price reduction.
