UK Property Asking Prices Rise as Autumn Market Begins to Stir
The UK property market is showing early signs of its traditional autumn revival, with average asking prices rising for the first time since May. However, high mortgage rates, weaker buyer demand and a crowded market mean sellers still face a challenging few months ahead.
The average asking price of a newly listed property has increased by 0.7% (£2,441) to £367,440 in September, according to Rightmove. The rise is slightly ahead of the ten-year September average of 0.5%, suggesting the usual autumn property market bounce may be beginning after a particularly subdued summer.
September traditionally brings renewed activity as buyers and sellers return from summer holidays and reconsider moving plans before the end of the year.
However, the latest UK housing market figures show sellers cannot afford to become complacent. Asking prices remain 0.8% lower than a year ago and 2.3% below their level at the beginning of summer.
Competition is also significant. The number of homes for sale in Great Britain is at a 12-year high for this point in the year, while buyer enquiries are 9% lower than they were 12 months ago.
Location matters for sellers
The likelihood of securing a buyer varies considerably across Great Britain. In Scotland, 91% of homes for sale are successfully finding a buyer, while the figure stands at 71% in the North West.
Conditions are considerably tougher in more expensive markets. Around 56% of homes find buyers in the South East, falling to just 42% in London.
Pricing is therefore becoming increasingly important. Rightmove figures show 74% of properties sold so far this year were priced correctly from the outset, without requiring a subsequent asking-price reduction.
Mortgage rates continue to squeeze affordability
Higher UK mortgage rates remain another obstacle for prospective buyers. The average two-year fixed mortgage rate has risen from 5.09% last month to 5.29%, increasing monthly borrowing costs and putting further pressure on affordability.
Despite September’s encouraging increase in asking prices, the autumn market remains finely balanced. Sellers entering the market will need to combine realistic pricing with an understanding of local demand as buyers continue to carefully assess affordability.
The coming months will reveal whether September’s increase marks the beginning of a sustained UK property market recovery or simply a seasonal uplift following a quiet summer.
