The average asking price for properties coming to market in the UK has risen by 0.3% this month, equivalent to £1,199, bringing the total to £371,958, a small uptick as most owners are pricing homes to sell quickly.
This increase falls short of the typical October rise of 1.3%, amid a surge in buyer choice, which has reached levels not seen in a decade, according to property website Rightmove.
With a broader array of properties available, buyers are leveraging their newfound negotiating power, keeping price increases in check. Market activity, however, remains strong despite the uncertainty and fears surrounding the upcoming autumn budget.
Many sellers are opting to price their homes attractively to attract buyers amidst heightened competition. Affordability continues to challenge many buyers, but there are signs of improvement on the horizon for 2025.
Tim Bannister, Rightmove’s director of property science, said: “This month’s subdued price growth coincides with a notable increase in buyer choice. With the ball firmly in buyers’ courts and a wide selection to choose from, sellers are compelled to set competitive prices.
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“Many appear to be responding to this pressure, contributing to the limited price growth and better affordability for buyers. Sales activity remains strong compared to the quieter market of last year, although some prospective movers are biding their time, awaiting clarity from the budget and potentially lower mortgage rates later this year.”
Sales activity is up, with agreed sales now 29% higher than during the same period last year. Inquiries to agents regarding available properties have risen by 17% compared to the previous year.
However, despite this market activity, the number of new properties hitting the market and the time taken to sell are both on the rise. This increase has led to a 12% year-on-year rise in available homes for sale, with the average number of listings per estate agent branch at its highest since 2014.
Competition is more intense in the high-end market, where the availability of four-bedroom detached and five-bedroom-plus homes has increased by 17% compared to last year. For sellers, pricing competitively remains essential in this buyer-driven market.
After a series of mortgage rate declines spurred by the August interest rate cut, the property market has seen signs of stagnation, with the average five-year fixed mortgage rate now at 4.61%, up from 4.55% the previous week.
Chris Rowson, managing director of Sharman Quinney in Peterborough, said: “We’ve experienced one of our busiest months for new sellers in a decade, with a significant uptick in both new instructions and agreed sales.
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“The bank rate cut and subsequent lower mortgage rates have encouraged more sellers to enter the market. While there’s always uncertainty surrounding the budget, we’re not witnessing buyer hesitation as a result.”
Despite high borrowing costs, Rightmove said there were positive indicators for 2025, with financial markets predicting two bank rate cuts by year-end. Should these cuts materialise, they may lead to further reductions in mortgage rates.
While rates are not expected to return to the lows of previous years, combined with wage growth and modest house price inflation, this could allow those struggling to get on the housing ladder a push.
Bannister said: “Clarity on the budget, followed by anticipated Bank rate cuts, could stimulate market optimism similar to what we experienced last summer. While affordability remains a key hurdle, expected rate cuts could offer the boost many potential buyers are waiting for, potentially allowing previously sidelined buyers to re-enter the market.”
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