UK House Prices Rise 0.7% in September, Reversing Months of Decline
Average asking prices climbed by £2,441 in September, marking the first monthly increase since May.
Key points
- UK average asking prices rose 0.7 percent in September to £367,440, the first monthly gain since May.
- Homes for sale reached a 12-year high, while buyer demand remains below last year’s levels.
- Only 61 percent of listed homes are finding a buyer, with London at 42 percent and Scotland at 91 percent.
Average UK asking prices rose by 0.7 percent in September. This marks the first monthly increase since May. The national average asking price is now £367,440.
The jump exceeds the decade-long average September rise of 0.5 percent. A quiet summer created conditions for this rebound. However, prices remain 0.8 percent below last year’s levels.
Supply Outpaces Demand in Autumn Market
Homes available for sale hit a 12-year high for this time. Buyer demand is lower than at the same point last year. Sellers face stiff competition from a crowded marketplace.
Only 61 percent of listed homes are finding a buyer. This success rate varies significantly across Britain. Scotland sees a 91 percent success rate, while London is at 42 percent.
Mortgage Rates Pressure Buyer Affordability
The Bank of England kept rates at 3.75 percent last week. Average fixed mortgage rates have still increased recently. These rises are driven by higher swap rates.
Buyers remain cautious and price-sensitive in the months ahead. Mortgage costs are stretching affordability for many households. Rightmove reports that demand is currently below last year’s level.
Correct Pricing Drives Sale Success
74 percent of homes sold this year were priced correctly first. These properties did not need later price reductions. Correct initial pricing is key to attracting interest.
Sellers must set prices according to local market conditions. Competitive pricing is the biggest factor in securing a sale. High-quality finishes also help homes stand out in the crowd.
