The average house price has risen by 0.8% this month to £370,759 according to the latest Rightmove House Price Index.
According to Rightmove, September regularly sees a rise in price from the previous month, but this increase of 0.8% is double the long-term average. The Index suggests this represents the traditionally busier autumn market arriving earlier than usual, with buyers encouraged by mortgage rates trending downwards and earnings rising faster than both inflation and house price growth.
Despite the increase, Rightmove warns that beneath the surface the market remains cautious and that uncertainties still lie ahead, such as the second Bank Rate cut and the impact of the Autumn Statement in October.
Tim Bannister, director of Property Science at 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.”
The number of sales being agreed has increased by 27% year-on-year in September, while the number of potential buyers contacting agents has also risen by 15% on the previous year. Rightmove has said that the number of properties available to buyers has grown too, with the average number of available homes for sale per estate agency branch reaching 33, the highest since 2014. Despite this, the average property is still taking 60 days to find a buyer, three days longer than this time last year despite the improved market conditions.
Tom Brown, managing director of real estate at Ingenious, said: “Today’s data shows that the resilience and appeal of the UK property sector persist. Though we have seen higher inflation and sticky borrowing rates, we welcome the BoE’s recent rate cut and what will hopefully be the start of the much-needed falling rate cycle.”
“There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations. Consequently, any decline in homeowner sales is likely counterbalanced by increased demand from renters and investors. This is a trend that is not going away. However, it’s crucial to recognise that the situation isn’t consistent nationwide or across different property pricing brackets. It’s helpful to delve into subsectors and regional dynamics when assessing opportunities, as a broad market view can be misleading. In the real estate sector, we’re seeing significant investment capital for assets for long-term rental. On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.”
Michelle Walsh, head of intermediary sales at Together, commented: “House prices have continued to rise, spelling good news for sellers as confidence in the market continues to grow.”
“While the latest ONS figures indicate wage growth is cooling, many are still split on whether this and other market factors will influence the next Bank of England update due later this week. Many mortgage lenders have continued to cut their rates, as we have done at Together, which has welcomed competitiveness to the sector and will hopefully continue to fuel buyer and seller activity in the coming months.”
“It will be interesting to see what impact Wednesday’s announcement on inflation will have on people’s property plans. However, those eager to act now are best to consider the range of products and schemes designed to help. First-time buyers may wish to take advantage of Shared Ownership, and for those looking for fast and flexible finance, bridging loans may offer a solution. Speaking to a professional mortgage advisor is a great way to assess the options available.”
