The average asking price of newly listed homes rose 0.7% in September to £367,440, the first monthly increase since May and an above-average seasonal gain against the ten-year September norm of 0.5%.
The uptick is an early indicator of the traditional autumn market bounce, though it follows a run of monthly falls that has left prices 0.8% below last year and 2.3% below the level recorded at the start of summer.
Sellers returning to the market face substantial competition. The total number of homes available to buy has reached a 12-year high, while buyer enquiries remain 9% lower than at the same point last year. New listings are running 3% below last year's level month-on-month, and sales agreed have fallen 9% annually.
"September's above-average price rise is a welcome sign of confidence after a particularly subdued summer, but it should be viewed as a modest recovery rather than a major turning point," said Colleen Babcock, property expert at Rightmove.
"Property prices have largely underperformed against the long-term average this year, but September is an exception. 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. 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."
Several heatwaves and the World Cup combined to deepen this summer's seasonal slowdown, creating conditions for a sharper-than-usual rebound in enquiries as buyers return from holiday. Real-time Rightmove data shows buyer activity has picked up from August into September as expected, though it has not yet closed the gap on last year's levels.
On current averages, it takes 64 days from listing to find a buyer, followed by a further 150 days to reach completion. Sellers whose homes take the average time to sell will not complete before Easter next year. Six in ten (61%) of properties currently on the market find a buyer overall, down from nearly three-quarters (74%) in 2021 when demand was high and stock was short.
Rightmove analysis shows that 74% of homes sold so far this year were priced correctly at launch and required no subsequent reduction, underscoring how critical the initial asking price is in the current climate.
Selling success varies sharply by region. In Scotland, where the legal framework and buying practices differ materially from England and Wales, 91% of listed homes find a buyer. In the North West of England, where lower prices ease affordability pressures, 71% of properties sell. That compares with 56% in the South East and just 42% in London, where affordability is most stretched, and supply-demand imbalances are most pronounced.
Babcock adds: "It's encouraging to see more buyers returning to the market as we move into autumn, with activity picking up as usual after a subdued summer. Whilst almost two-thirds of homes are still successfully finding a buyer, the chances of selling vary significantly depending on where you live.
"Over 90% of homes that come to market for sale are selling in Scotland versus less than half in London, meaning those who want to sell will have to set their pricing according to local market conditions. Buyers continue to have plenty of choice and mortgage rates are increasing, so competitive pricing is still the biggest factor in attracting interest and securing a sale. Sellers who get the initial asking price right are giving themselves the best chance of standing out in a crowded market."
The two-year fixed mortgage rate average has risen to 5.29%, up from 5.09% last month and from 4.25% before the war in Iran began. The conflict has been a key driver of elevated mortgage rates, and the average monthly payment on a new mortgage is now around £180 higher than it was before the war started at the end of February. With no clear signs of an imminent resolution, financial markets remain unsettled, sustaining pressure on affordability for prospective buyers.
Industry reaction
Marc von Grundherr, director of Benham and Reeves, said: "Pricing correctly from day one is absolutely vital, particularly in London where buyers have a huge amount of choice and very little patience for homes that look over-ambitious on price. That can sometimes mean having a difficult conversation with a seller at the outset, but an experienced agent should be prepared to have it. Launch too high, and you risk wasting the strongest period of buyer interest, only to reduce later once the property has already started to look stale.
"Price is only part of the equation. Presentation matters, flexibility around viewings matters and, above all, sellers need to listen to the feedback the market is giving them. Those who work closely with their agent and are prepared to react quickly will put themselves in a far stronger position to secure a buyer. Sensibly priced, well-presented homes should continue to attract attention through the remainder of the year, while those that miss the mark are likely to find the market far less forgiving."
Ian Harris, president of NAEA Propertymark, commented: "The return of some seasonal momentum to the housing market is encouraging, but consumers should look beyond the headline increase in asking prices. With buyer demand still below last year's level, a high number of properties available for sale and mortgage costs continuing to put pressure on affordability, the market remains highly sensitive to price.
"For sellers, this makes professional advice particularly valuable. An asking price needs to reflect what buyers are realistically able and willing to pay in that particular local market, rather than simply relying on what a property might have achieved in previous years. Getting that assessment right at the outset can help avoid a property sitting on the market for longer and subsequently requiring a price reduction.
"Buyers, meanwhile, should remember that a slower market can provide greater choice and more opportunity to take time over a purchase, but affordability remains central to what they can realistically achieve. With the buying and selling process taking several months from initial instruction through to completion, anyone planning a move this autumn should have a clear understanding of their finances and timescales.
"The significant variation in selling success across different parts of Great Britain also demonstrates that there is no single national housing market. Local conditions, property type, affordability and the balance between supply and demand can all have a material impact. This is why consumers benefit from working with a qualified property professional who understands the market in their area and can provide informed advice throughout the transaction."
Jeremy Leaf, North London estate agent and a former RICS residential chairman, notes: "After a quiet few months, the increase in viewings since the end of the summer holidays has meant sellers are more optimistic about their prospects of finding a buyer.
"However, asking prices are not selling prices. Rather, they are an aspirational starting point, which determines whether any interest is generated in a property.
"In our offices, affordability concerns remain, prompted by rising inflation and mortgage rates, as well as fear as to what might be in store in next month's Budget. We are finding that only those sellers who understand the need for flexibility are receiving acceptable offers. Even then, the pace of sales is painfully slow, bearing in mind the ample choice of property in most price ranges."
