The average price of homes coming to the market increased 0.8% to £370,759, property site Rightmove said in a report released yesterday
Asking prices for UK houses rose at double their long-term average pace in September, indicating new optimism by home sellers in the wake of the BoE first interest rate cut in over four years.
The average price of homes coming to the market increased 0.8% to £370,759, property site Rightmove said in a report released yesterday.
While sellers typically hike prices in September, the scale of this month’s increase signals lower borrowing costs, and more properties up for sale are unlocking pent-up demand that has built up over the last year.
Buying a home is becoming more affordable thanks to growing real incomes and declining mortgage costs after the Bank of England’s first interest rate cut since the pandemic on August 1.
Demand has increased, while the average number of available properties per estate agent is at its highest since 2014, according to Rightmove.
Compared with 2023, the number of agreed sales has risen by more than a quarter.
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, according to Tim Bannister, Rightmove’s director of property science.
House prices are now up 1.2% than a year earlier. A recent report from the RICS indicated buyer demand and sales increased in August, while Halifax figures showed house prices getting close to record highs last month.
The construction of UK homes is also growing at its fastest pace in around two years.
That’s positive news for Prime Minister Keir Starmer, who put a plan to build 1.5 million new homes over the next five years.
Still, experts cautioned there are pockets of uncertainty in the market.
One big unknown is the budget on October 30, when Chancellor Rachel Reeves is expected to hike taxes to plug what she said is a £22 billion black hole in the public finances.
As per Rightmove, the average time for matching sellers and buyers is now 60 days, three days more than last year, as buyers remain price-sensitive.