Good news for sellers as asking prices see biggest jump in years, but experts warn the ‘cost-of-living’ Budget could cool things down.

The average price tag on a home has jumped by almost £3,000 this month, according to the latest figures from property website Rightmove. This 0.8% rise, pushing the average asking price to £370,759, is double what’s normally expected at this time of year and suggests the housing market is shaking off its summer lull.

Experts say buyers are being tempted back by falling mortgage rates and a greater choice of properties on the market. However, with the cost of living still high, buyers are being cautious about how much they’re willing to pay.

Could the Autumn Statement Spook the Market?

Rightmove’s data reveals that a record number of landlords are selling their rental properties. This suggests investors are getting ahead of a potential increase in Capital Gains Tax, a move widely expected in the upcoming Autumn Statement.

What the Experts are Saying

Property Industry Eye rounded up the opinions of several experts –

• Nathan Emerson, Propertymark: “It’s encouraging to see the housing market picking up, with buyers finding it a bit easier to manage mortgage costs. But the big question mark is the Autumn Statement at the end of November. Any changes to things like taxes could easily throw cold water on this new-found confidence.”
• Tom Bill, Knight Frank: “The falling mortgage rates have definitely brought buyers and sellers back to the market this autumn, and we’re expecting to see the busiest end to the year for a while. That said, there’s a lot of nervousness about what might be in the Budget. While we expect to see more sales going through, buyers aren’t likely to get carried away in a flurry of offers.”
• Jason Dainty, Hopkins & Dainty: “The market is looking much healthier than we’d normally expect at this time of year. Good properties, priced realistically are flying off the shelves, sometimes within a day of being listed. The key takeaway is that sellers need to be realistic with their pricing if they want to find a buyer.”
• Tony Gambrill, Chestertons: “We saw a surprisingly busy summer in London as buyers, fed up with waiting on the side lines, jumped at the chance to lock in lower mortgage rates. This momentum looks set to continue through the autumn as buyers compete for available properties.”
• Adam Feather, Robert Anthony Estate Agents: “Prospective buyers are feeling more upbeat now that mortgage rates have eased. We’re seeing more activity across the board, regardless of price bracket, and we expect this upward trend to continue as affordability improves.”