Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Rightmove asking prices up 0.7% in first increase since May
Rightmove's latest House Price Index shows average new seller asking prices rose 0.7% this month to £367,440 — the first monthly increase since May. Buyer activity also picked up after the summer slowdown, which the index describes as early signs of the market's traditional autumn bounce.
A challenging backdrop for agents
Agents continue to operate in difficult conditions. The number of homes for sale is at a 12-year high, while buyer enquiries are 9% lower than a year ago and agreed sales are also down 9%. Mortgage pressure is adding to the strain, with the average two-year fixed rate rising from 5.09% to 5.29% over the past month.
Industry reaction
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said that after a quiet few months, the increase in viewings since the end of the summer holidays had made sellers more optimistic about finding a buyer. He noted that asking prices are not selling prices, but rather an aspirational starting point, and said affordability concerns remain in his offices — prompted by rising inflation and mortgage rates, as well as uncertainty ahead of next month's Budget. In his experience, only sellers who understand the need for flexibility are receiving acceptable offers, and the pace of sales remains slow given the ample choice of property in most price ranges.
Kevin James, managing director at Bradleys Estate Agents, said the summer months delivered better activity than expected in the agency's areas, particularly among sellers who priced realistically. He reported seeing the traditional autumn uplift in demand as families return from holidays, and noted that there are more homes available in the South West than at this time last year, giving buyers greater choice. He stressed that realistic pricing and strong presentation are increasingly important, and that sellers who price correctly from the outset, or adapt swiftly, are best positioned to secure a sale.
Ian Harris, president of NAEA Propertymark, said the return of seasonal momentum is encouraging but consumers should look beyond the headline increase in asking prices. He pointed to buyer demand below last year's level, high stock levels and mortgage costs pressuring affordability, and said the market remains highly sensitive to price. He argued that professional advice is particularly valuable, with asking prices needing to reflect what buyers can realistically pay in the local market rather than relying on past values. A misjudged assessment can leave a property sitting on the market longer and requiring a price reduction. He also advised anyone planning an autumn move to have a clear understanding of their finances and timescales, given the process takes several months from instruction to completion.
What this means for agents
High stock, subdued buyer demand and rising mortgage costs make accurate pricing and strong presentation advice more important — themes echoed across the industry responses to the index.
Source: Property Industry Eye