In a current property market that is favoring buyers, the average price tag on a home has seen a slower increase than usual for the month of October, according to a report from property website Rightmove. Across Britain, the average asking price for a property went up by 0.3% month-on-month, or £1,199, reaching £371,958 in October. This rise is lower than the typical monthly increase at this time of year, with prices usually going up by 1.3% in October over the long term.
Rightmove noted that buyers are benefiting from a greater selection of properties, giving them more bargaining power and helping to keep price increases modest. Sellers are also pricing their properties attractively to attract buyers, especially with increased competition among sellers. Tim Bannister, Director of Property Science at Rightmove, mentioned that buyer choice is currently at its highest level since 2014, emphasizing the importance of competitive pricing for sellers in the current market.
Market activity remains strong, with sales activity bouncing back compared to last year, according to the report. The number of buyers enquiring about homes for sale has also risen. Competition between sellers is particularly high in the top-end market segment, with more four-bedroom detached houses and five-bedroom-plus homes available for sale compared to last year, signalling a buyer’s market.
Looking ahead to 2025, Tim Bannister expressed optimism for the market, suggesting that affordability pressures on movers could ease with expected cuts in mortgage rates. This could potentially attract buyers who were previously priced out of the market. Chris Rowson, Managing Director of Sharman Quinney estate agents, reported a surge in new instructions and increased buyer interest in areas such as Cambridgeshire, Lincolnshire, and Northamptonshire.
Joel Baseley, Founder and Director of Rampton Baseley in London, highlighted a busy year for transactions but noted subdued price growth, potentially influenced by higher interest rates and post-pandemic price increases. With a vast array of properties on the market, serious buyers are in a strong negotiating position for their next home purchase.
Nathan Emerson, Chief Executive of Propertymark, echoed this sentiment, stating that many buyers have a wide choice of properties to consider and may be waiting to see the impact of the Bank of England’s interest rate decision before making a move. The report coincided with data from Hamptons indicating that the average rent for a newly-let property in Britain hit a record high of £1,384 per month in September, with rental price growth slowing down from previous months.
As the market dynamics continue to evolve, sellers are advised to price competitively while buyers navigate the landscape of increased choice and affordability considerations. Optimism remains for the property market as it heads towards 2025, with potential shifts in interest rates and market conditions on the horizon.