Rightmove’s latest house price index (HPI) reveals modest price growth amidst strong market activity.
- The average asking price for new sellers increased by 0.3% this month to £371,958.
- Sales agreements have surged by 29% compared to the previous year, indicating market recovery.
- Buyer demand remains high despite uncertainties surrounding the Autumn Budget.
- Increased housing options have enhanced buyer negotiating power, maintaining stable prices.
Rightmove’s recent house price index (HPI) has indicated a restrained increase in average asking prices for new sellers by 0.3%, reaching £371,958. This rise is notably below the typical seasonal increase expected at this time of the year, which stands at around 1.3%. The modest price increment suggests a balance in the housing market dynamics, with increased buyer choice and competitive seller activity playing pivotal roles.
The year-on-year comparison of sales agreed showcases a robust 29% increase, reflecting a significant rebound from the previous year’s subdued market conditions. This upward trend is testament to the resilience and recovery in the housing sector, contradicting earlier apprehensions about market stagnation.
A remarkable surge in buyer enquiries, up by 17% from the last year, further underscores the heightened interest in property purchasing despite the looming uncertainties due to the Autumn Budget. This demand has been driven by a variety of factors, including stabilised mortgage rates and promising market forecasts.
Concurrent with this demand, there is a noticeable 12% rise in the number of homes available for sale compared to the previous year. This abundance in options has created a favourable buyer’s market, where individuals have greater leverage in negotiations, thereby stabilising asking prices and widening the spectrum of choice.
While the outlook for 2025 remains optimistic, it is not without challenges. The increase in the average five-year fixed mortgage rate to 4.61%, alongside a 10% rise in average annual energy costs for properties with an EPC rating of D, accentuates ongoing affordability pressures. Nevertheless, the anticipated Bank Rate cuts and wage growth outpacing property price increases could improve affordability prospects moving forward.
The housing market shows signs of resilience with stable prices, despite affordability challenges and external economic uncertainties.
