0.7% rise also above ten-year September average 

Pricing remains key to achieving a sale as mortgage rates rise, according to Rightmove. It follows a 0.7% rise in average newly-listed asking prices (+£2,441) in September to £367,440, the first monthly price increase since May and above the ten-year September average of 0.5%, according to Rightmove’s latest house price index.

However, prices are 0.8% below the same time last year and 2.3% below the start of summer. Colleen Babcock, property expert at Rightmove, warned that the figures need to be taken in context.

“September’s above-average price rise is a welcome sign of confidence after a particularly subdued summer, but it should be viewed as a modest recovery rather than a major turning point,” she said.

Rightmove reported that buying activity has also risen since August, although the number of those enquiring remains 9% lower than the same time last year.

Stock availability is still at a 12-year high. However, the number of newly-listed properties for sale is flat month on month and 3% down on this time last year, while sales agreed are 9% lower annually.

Rightmove’s figures show it takes an average of 64 days to find a buyer, followed by a further 150 days on average to complete, meaning unless sellers are able to beat these averages, they won’t move until after next Easter.

Rightmove also highlighted success rates across Great Britain, with on average 6 in 10 (61%) of homes that come to market finding a buyer, compared to 74% in 2021. However, this rises to 9 in 10 (91%) in Scotland versus 56% in the South East

Rise in mortgage rates hits buyer affordability

Increasing mortgage rates are hitting buyer affordability, with the average two-year fixed mortgage rate now 5.29%, up from 5.09% last month.

Matt Smith, Rightmove’s mortgage expert, said: “This month’s traditional uplift in buyer activity shows there’s still a strong underlying desire to move, but volatility in mortgage rates remains a significant challenge for many. Mortgage rates have risen again over the past month, adding further pressure to monthly budgets, and the uncertainty over what may happen to rates in the medium term is likely holding back some potential movers.” However, he said there was a good range of products availalble to buyers.

“There remains a good volume and range of mortgage products available to support borrowers across different deposit sizes, and although rate rises are never a good thing for buyers, they are at least more accustomed to elevated mortgage rates than a few years ago,” he said.