Asking prices for UK homes came under pressure over the last month by more than usual for this time of year, according to the latest Rightmove House Price Index.
In October prices increased by 0.3% compared to 1.3% typically for the month on average.
Rightmove’s figures did reveal that prices were 1.2% higher than a year earlier and the volume of sales being agreed is up 29% year-on-year, a strong bounce from the much weaker market in 2023.
Rightmove said market activity remains strong, but the muted Autumn price increase came as buyer choice and seller competition rose.
It expects prices to rise by 4% next year though this hinges on where mortgages rates go from here.
Rightmove’s director of property science Tim Bannister predicts a stronger 2025 in both prices and number of homes sold, particularly if mortgage rates fall by enough to significantly improve affordability for more of the mass market.
Commenting on the latest Rightmove figures Together director of intermediary relations Tanya Elmaz said: “The average asking price has risen 0.3% despite Reeve’s tax-heavy budget. This is likely due to the increased number of buyers and sellers moving their property plans forward ahead of the change in stamp duty.
She added: “Whilst it is difficult to predict exactly how the market will react long-term, findings in our new Residential Market Report forecast suggests that the residential property market is on the verge of a revival after the downturn of the past year.
We anticipate a 15% increase in residential property transactions over the next five years, highlighting the fact people are ready and willing to buy, so long as the right support is available.
Finova chief revenue officer Chris Little said that although the latest data saw some pressure on house prices, these fluctuations were to be expected.
He added that the complexity surrounding mortgage rates was impacting market conditions, too. “A declining base rate doesn’t always translate directly to lower mortgage rates as lenders weigh the impact of the recent Budget and other global events. The potential for higher US tariffs could also cloud the outlook for next year, but for the time being, there are still several competitive rates on the market.
“The government’s recent measures in the Autumn Budget designed to support the housing market, such as the reintroduction of the mortgage guarantee scheme, are gradually reviving homebuyer confidence. Wage growth and stabilising energy bills are helping fuel this recovery, with higher wages easing affordability challenges while lower energy costs are lightening household budgets.”
