Optimistic home sellers added almost £3,000 to average asking prices after the Bank of England cut interest rates.
Rightmove said sellers are gaining confidence in the autumn property market, pushing up the average price tag on freshly listed homes by £2,974 to £370,759.
The property listing giant said the 0.8 per cent monthly jump in asking prices was double the long-term average for September.
But Rightmove warned that sellers should not overcook their ambitions, as the average time taken to sell a home is 60 days – three days longer than a year ago.
Moving on up: Average asking prices have begun to rise again with sellers encouraged by falling mortgage rates
Nonetheless, Rightmove said there were clear signs of improvement in the property market, with falling mortgage rates encouraging buyers, and a 27 per cent uplift in homes selling compared to the same month last year.z
Mortgage rates have continued their decline after the Bank of England cut base rate in early August. The Bank’s ratesetters meet again this week with economists divided on whether interest rates will fall again.
Tim Bannister, of Rightmove, said: ‘The autumn action has started early with a strong rebound in activity from both buyers and sellers compared to the subdued market at this time last year, continuing the momentum from the better-than-expected summer market.
‘The certainty of a new government followed by the first Bank Rate cut in four years invigorated the market, opening a window of opportunity for movers to act.
‘Some of this will be pent-up demand from those who had to hit the pause button until now. However, windows of opportunity tend to need a momentum of good news to stay open, and there are still uncertainties ahead which could cause some of the current market activity to ease.’
Asking prices edged up 1.2 per cent annually, Rightmove said.
The burst of energy for the property market comes ahead of the Autumn Budget on 30 October, which Chancellor Rachel Reeves and Prime Minister Keir Starmer have lined up to be a gloomy affair.
After Labour made a manifesto promise not to raise income tax, national insurance, VAT or corporation tax rates, experts fear a wave of tax rises elsewhere, with potential capital gains, inheritance and pension raids rumoured.
An overly gloomy Budget is likely to dampen the property market and first-time buyers also face the threat of a stamp duty rise as their exemption below £425,000 runs out in April next year.
Asking prices rose across all the UK areas covered by the Rightmove report, except the East of England where they were flat last month
Mr Bannister said: ‘Early autumn movers who are acting quickly and taking advantage of the improved market conditions are getting the pick of quality homes for sale.
Homeowners who are thinking of coming to market soon shouldn’t let the increased activity make them over-optimistic and must price competitively to sell.
‘With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price.
‘There are question marks over how the market will be affected by announcements in the Autumn Statement, but until then we expect that market momentum will continue as the autumn action rolls on.’
Property inflation: Over the past five years average asking prices have risen from just over £300,000 to £370,000