But prices still lower than same time last year
UK house prices in September saw the first month-on-month increase since May this year, according to Rightmove’s latest analysis.
The average asking price for newly-listed homes rose by 0.7% to £367,440. This is also a larger increase than the ten-year September average of 0.5%.
However, prices are 0.8% lower than during the same time last year and 2.3% below where they were at the start of the summer.
Colleen Babcock, property expert at Rightmove, said: “September’s above-average price rise is a welcome sign of confidence after a particularly subdued summer, but it should be viewed as a modest recovery rather than a major turning point.
“Property prices have largely underperformed against the long-term average this year, but September is an exception.”
The property sector has noted subdued market activity over the past few months, with experts pointing to the uncertainty created by the conflict in the Middle East, as well as heatwaves, political change and football dominating attention over the summer.
The latest house price index noted that sellers are facing competition, with more homes currently available to buy than in the past 12 years. Meanwhile, the number of buyers enquiring is 9% lower than the same time last year.
Seller success varies regionally, with 91% of homes for sale in Scotland finding a buyer, compared to 71% in the North West of England and 42% in London.
The average two-year fixed mortgage rate is now 5.29%, up from 5.09% last month, which “continues to stretch affordability for buyers”.
Matt Smith, mortgages expert at Rightmove, said: “This month’s traditional uplift in buyer activity shows there’s still a strong underlying desire to move, but affordability remains a significant challenge for many.
“Mortgage rates have risen again over the past month, adding further pressure to monthly budgets, and the uncertainty over what may happen to rates in the medium term is likely holding back some potential movers.”
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