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House prices have seen a 0.8% rise over the past month, bringing the average price to £370,759, according to recent data from Rightmove. September typically shows positive growth in the housing market, but this year’s increase is double the long-term average, signaling a significant rise in market activity. This comes as both buyers and sellers show renewed interest following a quieter period last year.
New sellers entering the market have increased by 14% compared to the same time last year, while the number of agreed sales has jumped by 27%. Last year’s market was subdued as homeowners adjusted to rising interest rates after years of near-zero levels. The current rebound reflects a renewed sense of optimism, despite lingering concerns over interest rates and economic uncertainty.
However, Rightmove’s data also indicates some caution. On average, it now takes 60 days for a seller to secure a buyer, which is three days longer than at this time last year. This suggests that while there is more activity, the market is still facing some challenges in converting interest into finalized transactions.
Tim Bannister, director of property science at Rightmove, highlighted that the housing market has seen an early autumn surge in activity, continuing the momentum from a stronger-than-expected summer. According to Bannister, this renewed activity is largely driven by the increased stability in the market following the recent government change and the first Bank Rate cut in four years. He also noted that part of this demand may be the result of pent-up interest from those who previously delayed their buying or selling decisions.
Bannister, however, warned that the current momentum in the housing market may not last indefinitely. He emphasized that market conditions could shift, and continued positive developments would be needed to keep the current level of activity going. Uncertainties in the broader economic landscape could still impact market performance in the coming months.
Mortgage rates have also seen some relief. The average five-year fixed rate has fallen to 4.67%, down from its peak of 6.11% in July of last year. Although rates are still significantly higher than the 2.34% seen three years ago, the decline offers some respite for potential buyers.
The Bank of England is scheduled to meet this Thursday, with no rate cut expected at this session. However, many economists anticipate potential cuts in the coming months, possibly in November or December, which could further impact housing market conditions.
