Rightmove: Autumn bounce has turned into a fall

Average asking prices have increased as usual between September and October but at the slowest rate since 2008, Rightmove has revealed.

The portal’s latest House Price Index, which focuses on asking prices of newly listed homes, showed the typical value of new seller listings rose by 0.5% on a monthly basis at the start of October to £368,231. 

Although newly advertised property prices typically rise at this time of year, this is the smallest increase in our October report since 2008 and significantly below the average increase of 1.4% seen at this time over the past 20 years, Rightmove said.

Asking prices are down 0.8% annually.

Buyer activity also remains “significantly lower than during the post-pandemic market frenzy,” Rightmove said.

The number of sales being agreed is now 17% below this time last year, with the proportion of homes finding a buyer and being marked Sold Subject To Contract dropping from an average of eight in 10 at the height of the frenzy, to six in 10 now. 

Buyers are still active for the right property at the right price, the portal added, but sellers need to capture a buyer’s attention with a competitive price from the first day of marketing. 

Tim Bannister, Rightmove’s director of property science, said: “New seller asking prices have seen a rise, as they usually do at this time of year following the summer holiday season. While this year’s much more subdued rise indicates that some new sellers are gradually heeding their agents’ advice to price competitively, agents report that other sellers still need to adjust their expectations on the price that they are likely to achieve in the current post-pandemic/

“In a market that agents describe as the most price-sensitive ever, buyers are likely to be on the look-out for homes that they feel represent excellent value, and to attract one of these motivated buyers, sellers need to price right first time. If similar nearby properties for sale appear overpriced, serious sellers have an opportunity to stand out from the crowd with a more competitive price and attract immediate buyer interest that our research shows significantly increases the likelihood of finding a buyer.”

Commenting on the report, Tom Bill, head of UK residential research at Knight Frank, said: “The seasonal autumn bounce has been barely detectable this year in the UK housing market. 

“Mortgage rates are stabilising but recent comments from Bank of England Governor Andrew Bailey about the difficult “last mile” to tame inflation show why buyers and sellers are still hesitant.

“House prices will continue to come under pressure but we think most of the correction will happen this year and demand will improve in 2024 as inflation comes under control. The General Election may limit activity levels but modest single-digit annual growth should return from 2025.”