UK asking prices rise 0.7% in September to £367,440 as autumn selling begins

Monthly asking price rebound

British residential property sellers raised asking prices in September for the first time since May, according to monthly index data published by real estate portal Rightmove. Prices for homes put up for sale increased by 0.7%, representing a monetary increase of £2,441, over the period between 9 August and 12 September. This monthly gain lifted the national average asking price across Britain to £367,440. The 0.7% uptick surpassed the decade-long average September increase of 0.5%, a period when market activity typically accelerates as prospective buyers return from summer holidays. The rise followed a 2.0% decline recorded across the preceding four weeks. Rightmove noted that intense summer heatwaves alongside the World Cup had contributed to an unusually quiet summer, establishing the conditions for a seasonal rebound.

Inventory at 12-year high

Despite the September increase, broader price indicators show that property values remain depressed relative to earlier periods. Average asking prices are 0.8% lower than at the same time last year and sit 2.3% below levels recorded at the beginning of the summer. Rightmove pointed out that property prices have largely underperformed against their long-term average throughout the year, making September an exception to the broader annual trend. Sellers face a competitive environment because the total number of homes available for sale reached a 12-year high for this time of year. With supply expanding while buyer affordability remains constrained, Rightmove property expert Colleen Babcock reviewed the prevailing market balance.

While buyers and sellers are returning to the market after the summer holidays to potentially fuel an autumn bounce, sellers face stiff competition from a 12-year high number of other homes for sale.

Mortgage rates and buyer affordability

Overall buyer demand continues to trail levels recorded at this time last year as prospective purchasers grapple with stretched affordability challenges. The Bank of England maintained its benchmark interest rate unchanged at 3.75% last week, but average fixed mortgage rates have still been increasing in recent weeks. That rise in residential lending costs followed upward movement in swap rates, which commercial lenders use to price fixed-rate mortgages. Finance experts noted last week that fixed mortgage rates are influenced by financial markets' expectations for what will happen, which reinforces cautious behavior among prospective buyers in the months ahead. Babcock emphasized the strategy required for sellers trying to secure a transaction.

With a large crowd of sellers chasing a smaller number of buyers, realism on pricing or a high-quality finish are absolutely key to attracting a buyer and making a sale.

Regional sales success and market trends

Rightmove's analysis indicated that a home put up for sale in Britain currently has around a six in 10 (61%) chance of finding a buyer, though success rates vary significantly by region. In Scotland, nine in 10 (91%) homes for sale are finding a buyer, representing the strongest performance within the dataset. Across Britain as a whole, sellers face an unusually crowded marketplace where high listing numbers give buyers greater leverage during price discussions. Finance experts expect home buyers to remain cautious and price-sensitive in the months ahead as swap rates and mortgage costs fluctuate.