Housing market remains strong as buyers wait for October budget

The housing market remains strong, with the number of available homes reaching a decade high, but autumn activity has slowed compared to typical seasonal trends.

According to Rightmove’s House Price Index, the average price of property coming to the market for sale has increased by 0.3% this month (+£1,199) to £371,958.

This is a much lower monthly increase in new seller asking prices than is typical at this time of year, with the long-term average October rise being +1.3%.

Waiting for the October budget

The Rightmove House Price Index reveals the number of available homes for sale is 12% higher than a year ago – and the highest per estate agent since 2014.

The number of sales being agreed is now 29% higher than the same period last year, while inquiries from potential buyers have surged, with 17% more people contacting agents about homes for sale compared to this time last year.

Tim Bannister, Rightmove’s director of property science, says some buyers are still waiting for the October budget before they decide what to do next.

He said: “This month’s subdued price growth comes as buyer choice soars to a level not seen since 2014. With the ball in the buyer’s court and the pick of a big crop to choose from, sellers need to be pricing competitively to find a buyer, particularly with affordability still very stretched.

“Some sellers appear to be acting on this caution, contributing to limited price growth and better buyer affordability. This is helping to keep the number of sales being agreed consistently and strongly ahead of the quieter market of this time last year.

“We’re not seeing activity slow down, but some estate agents report that some movers are now waiting for Budget clarity and anticipated cheaper mortgage rates later this year. However, others state that movers are largely just getting on with plans.”

Rightmove’s Energy Bills Tracker also highlights the impact that rising energy prices are having on household finances.

The average annual energy bill for a home with the typical Energy Performance Certificate (EPC) rating of D, is £2,465, up by 10% or £224 compared to September due to the price cap increase at the start of this month.

Market has changed

Jeremy Leaf, north London estate agent and a former RICS residential chairman said: “There’s no question the market has changed considerably since last summer.

“Interest rate and political uncertainty has been replaced by steadily falling mortgage costs and more stable government. As a result, buyer and seller sentiment, which is of course is so crucial to activity, has improved.

“However, over-supply of stock in some areas and price ranges, as well as worries about the contents of the forthcoming Autumn Statement, has increased caution, deferred decision-making and kept prices in check.

“Looking forward, we expect there will be a modest bounce back if the Chancellor’s announcements prove to be less damaging than many fear.”

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