House prices continue to rise, but listings are also up

House prices rose 0.3% to a record high in September, according to Rightmove’s house price index.

The index shows the average house price hitting £338,642, this is a 0.3% increase on the figure for August and just £15 more than July’s average, suggesting prices are stabilising. The figure is 5.8% higher year-on-year.

The index also shows that the number of new properties listed for sale increased 14% in the first fortnight of September compared to the first two weeks in August. If this pattern continues, it could allay concerns about a mismatch in the market between supply and demand.

“Competition is hotter than ever, with buyer demand per property for sale more than double that of pre-pandemic levels,” the index said. “Nevertheless, as we enter the busy autumn period, there are early signs of more properties coming to market, which may help to slowly rebuild buyer choice.”

Earlier this month, the Royal Institution of Chartered Surveyors said house purchase enquiries fell in July and August but prices keep rising due to a lack of stock.