The housing market is showing early signs of its traditional autumn bounce, with average new seller asking prices rising for the first time since May.
Prices increased by 0.7% this month to £367,440, while buyer activity also picked up following the summer slowdown.
However, agents face a challenging backdrop. The number of homes for sale is at a 12-year high, buyer enquiries are 9% lower than a year ago and agreed sales are also down 9%.
Higher mortgage rates are adding to the pressure, with the average two-year fixed rate rising from 5.09% to 5.29% over the past month.
Rightmove Asking Prices Show Monthly Increase – Property Industry Eye
“However, asking prices are not selling prices. Rather, they are an aspirational starting point, which determine whether any interest is generated in a property.
“In our offices, affordability concerns remain, prompted by rising inflation and mortgage rates, as well as fear as to what might be in store in next month’s Budget. We are finding that only those sellers who understand the need for flexibility are receiving acceptable offers. Even then, the pace of sales is painfully slow bearing in mind the ample choice of property in most price ranges.”
Kevin James, managing director at Bradleys Estate Agents: “The summer months delivered better activity than expected in our areas, particularly for sellers who adapted their expectations to the affordability pressures in the market, and listened to advice to price realistically. As families now return from their holidays and the new school year begins, we’re seeing the traditional Autumn uplift in demand.
“With more homes available in the South West than at this time last year, buyers have greater choice. However, realistic pricing is critical, and strong presentation is also increasingly important. Higher mortgage rates continue to influence affordability, so sellers who price correctly from the outset or at least adapt swiftly are best positioned to secure a sale and achieve their move in 2026.”
Ian Harris, president of NAEA Propertymark: “The return of some seasonal momentum to the housing market is encouraging, but consumers should look beyond the headline increase in asking prices. With buyer demand still below last year’s level, a high number of properties available for sale and mortgage costs continuing to put pressure on affordability, the market remains highly sensitive to price.
“For sellers, this makes professional advice particularly valuable. An asking price needs to reflect what buyers are realistically able and willing to pay in that particular local market, rather than simply relying on what a property might have achieved in previous years. Getting that assessment right at the outset can help avoid a property sitting on the market for longer and subsequently requiring a price reduction.
“Buyers, meanwhile, should remember that a slower market can provide greater choice and more opportunity to take time over a purchase, but affordability remains central to what they can realistically achieve. With the buying and selling process taking several months from initial instruction through to completion, anyone planning a move this autumn should have a clear understanding of their finances and timescales.
“The significant variation in selling success across different parts of Great Britain also demonstrates that there is no single national housing market. Local conditions, property type, affordability and the balance between supply and demand can all have a material impact. This is why consumers benefit from working with a qualified property professional who understands the market in their area and can provide informed advice throughout the transaction.”
Tomer Aboody, founding director of specialist lender MT Finance: “It is good news for prospective purchasers that the number of homes for sale at a 12-year high. But with the number of buyer enquiries down 9 per cent on last year, higher borrowing costs and yet more uncertainty with a new Prime Minister, Chancellor and another Budget where more tax rises are expected, are acting as deterrents.
“What is desperately needed is some market stimulus, ideally via stamp duty reform, to encourage more transactions. These are good not only for the health of the market but the wider economy.”
Marc von Grundherr, director of Benham and Reeves: “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. That can sometimes mean having a difficult conversation with a seller at the outset, but an experienced agent should be prepared to have it. Launch too high and you risk wasting the strongest period of buyer interest, only to reduce later once the property has already started to look stale.
“Price is only part of the equation. Presentation matters, flexibility around viewings matters and, above all, sellers need to listen to the feedback the market is giving them. Those who work closely with their agent and are prepared to react quickly will put themselves in a far stronger position to secure a buyer. Sensibly priced, well-presented homes should continue to attract attention through the remainder of the year, while those that miss the mark are likely to find the market far less forgiving.”
