Good news for sellers as the number of homes being sold in the UK has rocketed by almost a third compared to this time last year. But buyers might be calling the shots as a surge in available properties keeps prices in check.
Rightmove, the property website, reveals that agreed sales have jumped by 29% this month. This comes despite the usual autumn price surge failing to materialise. Why? Because a ten-year high in the number of homes up for grabs means buyers are spoilt for choice and in a strong position to negotiate.
Even with the uncertainty surrounding the upcoming budget at the end of October, eager house hunters are out in force. Rightmove reports a 17% increase in people contacting estate agents compared to last year.
This flurry of activity points to a buoyant market. Tim Bannister, Rightmove’s director of property science, explains: “Sales activity has not only bounced back from the low of last year but has continued an upward trajectory. There is also a healthy level of underlying buyer demand as people continue to plan their next move.”
More Choice, Less Price Pressure
With 12% more homes on the market than a year ago, buyers hold the upper hand. This abundance of choice has put a lid on price increases. Rightmove’s latest data shows the average asking price for a property inched up by a mere 0.3% this month to £371,958. This is a far cry from the typical 1.3% rise usually seen in October.
Joel Baseley, director of London estate agents Rampton Baseley, commented: “We’ve seen one of the best years for numbers of transactions in our 18-year history. While activity has been exceptional, price growth has been muted.”
What’s Next for the Housing Market?
While Rightmove predicts a positive outlook for 2025, some dark clouds remain on the horizon. The cost of getting a mortgage is a major worry for many potential buyers. The average five-year fixed mortgage rate currently sits at 4.61%, a slight increase from the previous week.
Some experts believe buyers are delaying their property purchases, hoping for mortgage rates to fall. The Bank of England’s decision to potentially cut interest rates next month is also adding to the uncertainty.
Adding to this, the upcoming Labour budget on 30th October has left some people hesitant. Rightmove’s Tim Bannister observes: “Some estate agents report that some movers are now waiting for budget clarity and anticipated cheaper mortgage rates later this year.”
In a nutshell, while the property market is bustling with activity, affordability concerns and economic uncertainties mean both buyers and sellers need to tread carefully in the months ahead.