Rightmove’s latest house price index indicates a modest market movement, reflecting ongoing resilience amidst uncertainty.
- Average new seller asking prices have increased by 0.3% (£1,199) to £371,958, which is less than the usual seasonal rise.
- Sales agreed have surged by 29% compared to the previous year, showing a robust market recovery.
- An increase in available homes by 12% year-on-year provides buyers with more choices, stabilising prices.
- Economic forecasts suggest potential interest rate cuts, offering hope for improved affordability in 2025.
Rightmove’s recent data shows a tentative growth in house prices, with average asking prices increasing by merely 0.3% (£1,199) this month to £371,958. This modest rise is significantly below the historical 1.3% increase typical for this season, illustrating the current competitive market conditions where expanding buyer options are exerting downward pressure on prices.
The real estate market’s vitality is evident, as the volume of sales agreed has climbed by 29% compared to last year. This upswing highlights a strong comeback from last year’s subdued market conditions. Despite potential disruptions related to the Autumn Budget, buyer interest remains robust, reflected in a 17% increase in inquiries to agents from the previous year.
The number of homes available for sale has risen by 12% compared to a year ago, reaching the highest levels per estate agent since 2014. This increase enhances buyer leverage, given the current affordability constraints, and leads to a stabilisation of asking prices despite increased market activity.
Forecasts for the housing market moving into 2025 are cautiously optimistic, though affordability challenges persist. The average five-year fixed mortgage rate has risen slightly to 4.61% from 4.55%, marking its first ascent since May. Meanwhile, financial analysts predict two Bank Rate cuts by the year’s end, which could alleviate some affordability pressures as wage growth continues to outpace house price increases.
There is a noticeable trend towards sub-5% mortgage rates becoming more popular, with these conditions poised to spur modest price growth as the year draws to a close. Sellers are believed to be accelerating their property listings ahead of the Autumn Budget, wary of potential tax implications, thereby sustaining market momentum.
Increased availability of larger properties, particularly four-bedroom detached and five-bedroom-plus homes, has grown by 17%, adding to the buyer’s market atmosphere. “Today’s data reflects a positive direction towards market recovery,” remarked Chris Little, noting the rise in sub-5% mortgage choices and potential interest rate reductions as favourable factors influencing buyer confidence.
The housing market shows signs of moderate growth, with expanding buyer options and stable prices hinting at a balanced recovery.
