The housing market remains active, but the latest Rightmove House Price Index shows a subdued increase in asking prices, rising by just 0.3% month-on-month to £371,958. This slight growth reflects increased buyer options and heightened competition among sellers.
Buyers gain negotiation power with more choice
Rightmove’s data highlights how a wider selection of properties is allowing buyers to exercise more negotiating power, keeping price increases minimal. The property portal attributes this to some sellers heeding estate agents’ advice to price homes competitively, ensuring activity remains strong despite the current economic climate.
“Many serious buyers seem to be in the driving seat when it comes to negotiating on their next home move due to the vast choice of properties on the market,” said Nathan Emerson, CEO of Propertymark. He also noted that competitive mortgage deals are helping buyers find affordable options, though he expressed hope for further Bank of England interest rate cuts to support the market.
Industry experts remain cautiously optimistic
Tom Bill, head of UK residential research at Knight Frank, noted that mortgage rates have been dropping since the summer, but buyers and sellers are still proceeding with caution. “The information vacuum ahead of the Budget has kept demand in check as the autumn market gets underway,” he said, adding that a favourable Budget could spur a surge in market activity.
Meanwhile, Chris Rowson, managing director at Sharman Quinney, reported a busy September with a sharp increase in new sellers and buyers. “The Bank Rate cut and lower mortgage rates definitely played their part in helping more people come to market,” he said, while adding that minor increases in mortgage rates have not been a significant concern for buyers at present.
Muted price growth despite strong market activity
While housing market activity remains robust, price growth has been slower than expected, with some attributing this to post-pandemic market adjustments. Joel Baseley, founder of Rampton Baseley, remarked, “We’ve seen one of the best years for transactions in our 18-year history, but price growth has been muted.” He suggested that higher interest rates and the significant rise in property values after the pandemic could be factors slowing price growth.
Despite uncertainty around the upcoming Autumn Budget, Marc von Grundherr, director of Benham and Reeves, noted improving market momentum. “We’re now seeing this increase in buyer demand start to filter through to actual sales, with monthly transactions being the strongest since 2022,” he said.
As the housing market approaches the end of the year, industry insiders remain hopeful for continued growth. However, affordability and interest rates will remain key factors to watch, with many awaiting the Bank of England’s next moves and the potential impact of the Autumn Budget on the property market.
