Property market remains strong despite uncertainty from approaching autumn budget

The autumn property market is holding its own despite uncertainty from next week’s budget.

Experts from property portal Rightmove say the average price of a home coming to the market for sale has risen by 0.3 per cent this month 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 around 1.3 per cent.

However, market activity remains strong and the advice is to price attractively to find a buyer, particularly with seller competition rising.

Tim Bannister Rightmove’s director of property science, says we are currently seeing a buyer’s market.

“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.”

The latest snapshot of sales activity shows that the number of sales being agreed is now 29 per cent ahead of the same period last year.

Therefore, sales activity has not only bounced back from the low of last year but has continued on an upward trajectory.

There is also a healthy level of underlying buyer demand as people continue to plan their next move.

The number of available homes for sale is 12 per cent higher than at this time last year, but also the average number of homes for sale per estate agent branch is at its highest since 2014.

Competition for buyers is particularly intense at the top end of the market, where the number of four-bedroom detached houses and five-bedroom-plus homes available for sale is 17 per cent ahead of last year.

The picture seems less heated at the lower end of the market, where people might buy and consider extension, loft conversion and remodelling building work.

“Despite a budget-shaped cloud on the horizon, the big picture still looks positive for the market heading into 2025,” he stresses.

“Market activity remains strong, despite affordability pressures on movers.

“Once we have more certainty about the contents of the budget, hopefully followed by speedy second and third bank rate cuts, we could see another surge in market optimism as we had in the summer.

“Affordability is still the biggest barrier facing many movers, with mortgage rates still high, so if the expected two cuts come to fruition it could be the boost that many buyers-in-waiting need.

“2025 could see the return of the previously priced-out buyer.”