The average price tag on a home jumped by just over £1,500 month-on-month in September as the autumn selling season got under way, according to a property website.
House buyers face having to pay £502 less than a year ago, according to new data. The average price tag on a home jumped by just over £1,500 month-on-month in September as the autumn selling season got under way, according to a property website.
Across Britain, the typical new seller asking price is £370,257 in September, marking a monthly rise of 0.4% or £1,517. Despite the September increase in prices, the first since May, the average asking price for a home in Britain is 0.1% or £502 lower than a year ago, Rightmove said.
It added that the first annual price drop since January 2024 is the culmination of several months of competitive pricing by new sellers over the summer, with the number of sales being agreed now 4% higher than a year earlier.
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Colleen Babcock, property expert at Rightmove said: “We’d expect to see a slight uptick in new seller asking prices in September, with the traditional back-to-school season boosting activity heading into autumn.
“This year’s 0.4% September price rise is a little lower than the norm, which is an average of 0.6% at this time of year. However, prices have now dipped slightly from where they were at this time last year after a summer of competitive pricing by sellers, and it’s the South of England which is driving this small dip.
“It’s the sensible and attractive seller pricing we’ve been reporting which has been helping to drive more sales activity compared to last year. Static house prices, rising wages, and lower mortgage rates all assist buyer affordability, which has led to an increase in the number of sales agreed compared to a year ago.”
Ms Babcock added: “Rumours of property tax changes began swirling in mid-August, and with the Budget itself not arriving until the end of November, this kind of extended uncertainty can affect market activity, especially in the higher price brackets.
“Movers want to be confident in planning their moving costs. Our real-time data has not yet picked up any major shifts, however, it’s understandable that those who could be negatively affected by the rumoured changes might be in the process of reassessing their short- and medium-term plans.”
Matt Smith, Rightmove’s mortgage expert, said: “Mortgage rates have edged upwards over the last few weeks as global events have made mortgage financing a little more expensive. Inflation is also proving sticky.”
He added: “The rhetoric around mortgages continues to be about how lenders can unlock greater affordability by allowing people to responsibly borrow more, which is encouraging for the market, particularly first-time buyers.”
Matt Giggs, founder of the Giggs Group in Cambridgeshire, said: “Sellers who reduced their price expectations over the summer are now creating more realistic conditions for sales, which is keeping things moving.
“We’re finding that well-presented, competitively priced homes are still attracting strong interest, and the high choice of homes for sale is also encouraging buyers.
“In Cambridgeshire, we’re seeing a steady market and aren’t feeling some of the drag that may be more apparent in London or further south.
“However, uncertainty around the Budget doesn’t help movers’ confidence, particularly those looking at higher-value homes. These buyers might be more hesitant to act until there’s clarity.”
Matt Thompson, head of sales at estate agent Chestertons in London, said: “Over the past months, the dynamics of London’s property market have changed, with some boroughs not experiencing the activity or price growth traditionally associated with a world capital such as London.
“While this has required buyers and sellers to adjust their approach, it has also created opportunities and enabled some house hunters to find properties that were previously outside their budget.
“After the summer holidays, we’ve already registered an uplift in inquiries from house hunters who are keen to proceed with their property purchase now as they believe the current market climate to be a temporary window of opportunity.
“Other buyers feel that they will have more clarity after the autumn Budget which could then boost buyer confidence and fuel a sellers’ market sentiment towards the end of the year.”
