September usually sees a monthly rise in prices, but this year’s rise is double the long-term average, with prices supported by higher activity levels, as per the property platform
The Bank of England’s August interest rate cut appears to have done its job in spurring on the housing market for now, with average new seller asking prices increasing by 0.8%, or nearly £2,974, this month to £370,759, according to Rightmove’s monthly monitor.
September usually sees a monthly rise in prices, but this year’s rise is double the long-term average, with prices supported by higher activity levels, as per the property platform.
Meanwhile, the number of sales being agreed is up by 27% year on year, a solid rebound compared with last year’s more subdued market as pent-up buyer demand is released.
Supply is strong too. The number of new sellers is up by 14% on this time last year, and the average number of available homes for sale per estate agent at its highest since 2014.
The certainty of a new government followed by the first bank rate cut in four years revived the market, opening a window of opportunity for movers to act, according to Tim Bannister, director of property at Rightmove.
Some of this will be pent-up demand from those who had to hit the pause button until now. Nevertheless, windows of opportunity tend to need a momentum of good news to stay open, and there are still uncertainties ahead which could cause some of the current market activity to decline, he said.
At this point it is important to consider what impact the budget at the end of next month may have on the housing market and if today’s figures reflect a keenness by consumers to complete on a property before any prospective changes to the current tax structure might be announced, according to Nathan Emerson, CEO of Propertymark.
The RICS August residential market survey showed that its net price balance, which acts as a leading indicator for other house price indexes, had increased +1 after nearly two years of declines.
