The property market has kicked off its traditionally busy autumn season earlier than expected, as many home movers spot a window of opportunity due to falling mortgage rates and increased housing availability. Average new seller asking prices have risen by 0.8% (£2,974) this month, reaching £370,759. This increase is double the usual seasonal rise, driven by a resurgence in activity compared to last year’s subdued market.
Strong rebound in property market activity
The number of property sales agreed is up by 27% compared to the same period in 2023, signalling a significant recovery. The uptick follows last year’s slower market, as buyers and sellers alike take advantage of improving conditions. According to Rightmove, potential buyer enquiries have increased by 15%, and estate agents are now seeing the highest number of available homes per branch—33 homes—since 2014.
Tim Bannister, Rightmove’s Director of Property Science, commented: “The autumn action has started early with a strong rebound in activity from both buyers and sellers compared to the subdued market at this time last year. The certainty of a new government followed by the first Bank Rate cut in four years invigorated the market, opening a window of opportunity for movers to act.”
Buyers take time, despite improving conditions
While activity has picked up, the market remains cautious. It now takes an average of 60 days for a seller to find a buyer, three days longer than the same time last year, despite improved conditions. This trend indicates that value-conscious buyers are taking their time to find the right home at the right price, creating a “two-speed market” where well-priced homes sell quickly, while overpriced properties linger.
Mortgage rates are also a key factor in this delicate balance. Rightmove’s latest data shows the average 5-year fixed mortgage rate is 4.67%, down from 6.11% in July 2023 but still almost double the rate from three years ago, which was 2.34%. While this is welcome news for some, affordability remains a barrier for others, leaving certain buyers waiting for further rate reductions before making a move.
Looking ahead to the Autumn Statement
As the market moves into autumn, attention is now turning to the upcoming Autumn Statement on 30th October. With potential tax changes on the horizon, particularly around capital gains tax, some sectors of the market are already reacting. A record proportion of former rental homes is currently up for sale, suggesting more landlords are choosing to exit the market.
Nathan Emerson, CEO of Propertymark, remarked: “It is positive news to see further uplift across the housing market now affordability has more confidently swung in the direction of consumers. Propertymark remains keen to see further dips in the base rate as conditions permit, but at this point, it is important to consider what effect the budget at the end of next month may have on the housing market.”
As the autumn market continues to gain momentum, buyers and sellers alike are making the most of the current opportunities, though uncertainties remain around interest rates and potential policy changes in the months ahead.
