Average asking prices for newly-listed homes rise by 0.7% (+£2,441) this month to £367,440. This is the first monthly price increase we’ve seen since May
September’s above-average price increase for the time of year is a possible early sign of the usual increase in activity that we see in the Autumn
Sellers face a lot of competition, with more homes currently available to buy than we’ve seen in 12 years, and the number of buyers enquiring is 9% lower than this time last year
Success at selling varies widely across Great Britain, with 9 in 10 (91%) of homes for sale in Scotland successfully finding a buyer, versus less than half (42%) in London
The average two-year fixed mortgage rate is now 5.29%, up from 5.09% last month, as rising mortgage rates continue to stretch affordability for buyers
The average asking price of newly-listed properties for sale rises by 0.7% (+£2,441) this month to £367,440. This is the first increase to property asking prices since May.
September’s price increase is also larger than the ten-year September average of 0.5%, which is an early sign of the usual increase in activity we see in Autumn, and after a particularly quiet summer in 2026. September is usually a busier period, as potential movers return from holidays and refocus on buying and selling plans for the rest of the year.
There is, however, lots of ground to make up after this summer’s run of monthly price drops. Prices remain 0.8% lower than at this time last year, and 2.3% below where they were at the start of summer.
It’s a challenging market for sellers, with the number of homes available on the market for sale at a 12-year high for the time of year and affordability still stretched for buyers. Demand from buyers is still 9% lower than this time last year, as many buyers consider their finances carefully.
Accurate and competitive pricing key for sellers
Local estate agents across Great Britain continue to point to accurate and competitive initial pricing as being the number one critical factor in securing a sale. As Marc von Grundherr, Director of Benham and Reeves, notes, “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.”
This is backed up by Rightmove data, which shows that 74% of homes that have sold so far this year were priced right first time and didn’t need a subsequent asking price reduction.
Regional forces also come into play alongside pricing. Rightmove data shows that in Scotland, 9 in 10 (91%) of homes for sale are currently finding a buyer, and in the North West of England, 71% of homes find a buyer.
Compare this with only 56% of homes in the more expensive South East region finding a buyer, and only 42% in London, where affordability is the most stretched and there is a larger mismatch between supply and demand.
What are mortgage rates doing?
Rightmove’s daily mortgage tracker shows that the average two-year fixed mortgage rate is now 5.29%. This is up from 5.09% last month, and 4.25% before the war in Iran started, which has been a key driver in elevating mortgage rates.
The average monthly payment on a new mortgage is now around £180 more than it was before the war started at the end of February, further stretching buyers. A lack of clear signs of an imminent end to the conflict continues to create uncertainty for financial markets, with a knock-on impact on interest rates and buyer affordability.
Matt Smith, our mortgages expert, explains:
“This month’s traditional uplift in buyer activity shows there’s still a strong underlying desire to move, but affordability remains a significant challenge for many. Mortgage rates have risen again over the past month, adding further pressure to monthly budgets, and the uncertainty over what may happen to rates in the medium term is likely holding back some potential movers.
“There remains a good volume and range of mortgage products available to support borrowers across different deposit sizes, and although rate rises are never a good thing for buyers, they are at least more accustomed to elevated mortgage rates than a few years ago. Understanding your own personal affordability and how far you can stretch is really important in the current market.”
Read full article here: House Price Index | Property news
SOURCE: Rightmove
