The UK housing market has experienced a remarkable surge in home sales this month, with transactions rising by nearly one-third year-on-year. However, the anticipated autumn price increase has not materialized, largely due to an abundance of available properties, reaching a decade-high level.
According to Rightmove, the number of agreed sales has increased by 29%, while inquiries from prospective buyers contacting estate agents have grown by 17%, despite prevailing market uncertainties linked to the upcoming Budget announcement at the end of October.
“Sales activity has rebounded significantly from last year’s lows and continues on an upward trend,” stated Tim Bannister, Rightmove’s director of property science. He emphasized the sustained demand among buyers as they plan their next moves.
Rightmove’s latest house price index indicates that the current inventory of homes for sale is 12% higher than a year ago, representing the highest volume per estate agent since 2014. This increase in stock has afforded buyers greater choice and negotiation power, leading to a modest 0.3% month-on-month rise in average property prices, bringing the average asking price to £371,958. This figure contrasts sharply with the historical average increase of 1.3% typically seen in October.
Joel Baseley, founder and director of Rampton Baseley, a London-based estate agency, remarked, “This year has been one of the best in terms of transaction volumes in our 18-year history. While activity levels have been exceptional, price growth remains subdued. This may be attributed to the new normal of elevated interest rates, alongside a significant rise in values post-pandemic, which may require additional time to stabilize.”
Despite a generally positive outlook for the housing market in 2025, concerns regarding buyer affordability persist, with some potential homeowners opting to wait until mortgage rates decline. The average five-year fixed mortgage rate currently stands at 4.61%, up from 4.55% last week, marking the first weekly increase since May.
In August, the Bank of England’s monetary policy committee voted to reduce the base rate by 0.25%, and analysts predict another cut during their next meeting.
Rightmove noted that uncertainty surrounding Labour’s upcoming Budget on 30 October may also be influencing buyers’ decisions to delay purchases. “Some estate agents report that movers are waiting for greater clarity on the Budget’s implications for the housing market and anticipate lower mortgage rates later this year,” said Bannister. “Despite the looming budgetary uncertainty, the overall market outlook heading into 2025 remains optimistic. While market activity is strong, affordability continues to be the primary hurdle for many buyers.”
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