Rightmove urges agents to get ready for a busy Autumn

Average asking prices for new property listings had their usual summer drop this month but Rightmove is predicting a busy Autumn.

The latest Rightmove House Price Index shows average asking prices dropped in the first weeks of August amid the usual summer lull, falling 1.5% between July and August but rising 0.8% annually to £367,785.

The asking price of a typical first-time buyer home was down 0.3% to £227,191, second-stepper homes fell 0.9% to £340,605, but the biggest drop was at the top of the ladder with a 2.3% fall to £665,492.

The property website is predicting that the latest interest rate cut will give the market a boost for Autumn,

It has already recorded an 19% annual rise in the number of potential buyers contacting estate agents about homes for sale, up from 11% in July.

The number of sales agreed is now 16% ahead of the near-peak-mortgage-rate period of a year ago, Righmove said, while the number of new sellers coming to market is 5% ahead of last year as confidence to move grows.

This boost in activity has led the portal to raise its forecast for asking price growth to 1% for this year from a previously predicted decline of 1%.

The report shows that average stock per agent is now at 62 properties, up from 53 this time last year.

Time on the market has also increased though from 55 days to 59 nationally, which is flat on last month.

Tim Bannister, director of property science for Rightmove, said: “The first Bank Rate cut since 2020 has sparked a welcome late summer boost in buyer activity.

“While mortgage rates aren’t yet substantially lower since the rate cut, the fact that the long-hoped-for first cut has finally arrived, and mortgage rates are heading downwards, is positive for home-mover sentiment. As the summer holiday season comes to an end, the conditions are there for a more active autumn market.”

Commenting on the index, Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “There is no doubt the cut in base rate has been a shot in the arm for the housing market, particularly in terms of new enquiries during the traditionally quiet summer period.

 "However, the change was anticipated for such a long time so helped soften mortgage pricing on the high street. This meant the impact on property values has been modest to date.
 "Of course, Rightmove's asking prices are not selling prices but do reflect an important trend in seller aspiration and confidence.

 "With so many buyers, sellers and others involved in the transaction process now on holiday, obtaining commitment to proceed has been tricky although we certainly expect momentum will return from early September."

Nathan Emerson, chief executive of estate agency trade body Propertymark, added: “If inflation continue falls next month, it would be positive for the Bank of England to use this as an opportunity to cut interest rates further, especially as the recent cut in interest rates spurred some activity in the housing market.

“Additionally, now that the new UK government has had a month in power, they should implement their Planning and Infrastructure Bill to liberalise the planning system and deliver those millions of new homes the country desperately needs while protecting the greenbelt.”