But affordability remains key to sales completing
Buyers have returned from their summer breaks eager to buy with activity up since August, according to Rightmove’s September house price index. Their return fuelled a rise in average newly-listed of 0.7% (+£2,441) to £367,440, the first monthly increase since May and above the ten-year average of 0.5%.
However, despite the expected autumn bounce, the number of buyers enquiring is 9% lower than the same time last year. Sales agreed are also 9% down year-on-year.
Available property to buy remains at a 12-year high but selling success rates differ hugely across the country. On average in Scotland, 9 in 10 (91%) of homes successfully find a buyer, while in the North West it’s 71%. However, this drops to 56% in the South East and less than half (42%) in London.
Rightmove said the early sign of a usual Autumn market bounce followed a subdued summer impacted by multiple heatwaves and the World Cup. Successive monthly falls mean prices remain 0.8% below this time last year and 2.3% below what they were at the start of summer.
Sellers chasing limited buyers
Colleen Babcock, property expert at Rightmove, said: “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.”
Marc von Grundherr, director of Benham and Reeves, said this was particularly crucial in the capital. “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,” he said.
Ian Harris, president of NAEA Propertymark (National Association of Estate Agents), agreed price sensitivity will have a big impact over the coming weeks. He said: “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
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