Realistic property pricing and more buyer choice has kept asking price rises at 0.3% in October, lower than average for the time of year.
Rightmove’s October House Price Index revealed a muted autumn price bounce compared to the long-term October seasonal average of 1.3%.
The average property asking price tag is now £371,958.
Buyers flex bargaining power
A rise in the number of available homes for buyers to choose from has put downward pressure on price growth.
With a greater choice of properties to consider, buyers are making use of their increased negotiating power which is helping to keep price rises subdued.
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Sellers, says Rightmove, are also heeding advice to price their homes attractively amid rising competition.
Competition for buyers is greater at the top-end of the market where the number of four-bedroom detached houses and five-bedroom-plus homes available for sale is 17% ahead of last year.
Looming Budget fails to dampen market
Despite the upcoming Budget on 30 October creating uncertainty in the housing market, activity remains strong.
The number of available homes for sale is 12% higher than a year ago – and the highest per estate agent since 2014.
The number of sales being agreed is up by 29% year-on-year while the number of people contacting agents about homes for sale up by 17% compared with this time last year.
Tim Bannister, Rightmove’s director of property science, said: “With the ball in the buyer’s court and the pick of a big crop to choose from, sellers need to be pricing competitively to find a buyer, particularly with affordability still very stretched.
“Some sellers appear to be acting on this caution, contributing to limited price growth and better buyer affordability.
“This is helping to keep the number of sales being agreed consistently and strongly ahead of the quieter market of this time last year. We’re not seeing activity slow down, but some estate agents report that some movers are now waiting for Budget clarity and anticipated cheaper mortgage rates later this year. However, others state that movers are largely just getting on with plans.”
Positive outlook for 2025
Despite affordability pressures still weighing down on buyers and energy bills rising, Rightmove says there are positive signs for next year’s market.
“Once we have more certainty about the contents of the Budget, hopefully followed by speedy second and third Bank Rate cuts, we could see another surge in market optimism like we had in the summer,” said Bannister.
“Affordability is still the biggest barrier facing many movers, with mortgage rates still high, so if the expected two cuts come to fruition it could be the boost that many buyers-in-waiting need. 2025 could see the return of the previously priced out buyer.”
The Bank of England‘s Monetary Policy Committee meets next on 7 November. The Bank Base Rate is currently 5%.
