Set your property at the right price for a September sale

Home sellers should get their pricing ready for the September bounce, according to recent research.

Zoopla’s latest House Price Index has revealed that house price growth has slowed to 1.3 per cent, down from 1.7 per cent a year ago and sales agreed run nine per cent below last year’s levels.

This year has registered a sharper-than-usual summer slowdown, which is largely explained by elevated mortgage rates and political uncertainty.

Sales are still being agreed across the country, but at a slower rate than last year across most areas.

The North East is bucking the trend entirely, with sales up around 4 per cent on last year.

This is primarily down to cost - with lower average house prices in the North East cushioning buyers by ensuring that the same rise in mortgage rates translates into a much smaller cash increase for buyers than elsewhere.

For anyone considering a move this autumn, the message is clear: September is when sales typically register a second jump in the second half of the year, meaning sellers who get their pricing right now – rather than waiting to see what the season brings – are most likely to benefit from it.

At the same time, an increase in total homes for sale across eight of the UK’s 11 regions means buyers have more choice than a year ago, almost everywhere.

This provides serious buyers with real negotiating power. Fewer sales and more negotiating power explain why UK house price inflation has slowed.

Higher borrowing costs are a key factor for many buyers – average mortgage rates declined from April’s peak of close to five per cent to around 4.65 per cent in June, before ticking back up to around 4.75 per cent in July as tensions in the Middle East returned.

Since January, rate rises have added roughly £125 a month – £1,500 a year – to mortgage repayments for a typical UK home, with July’s increase adding further to that cost.

This added cost is a key reason sales agreed have fallen faster than usual this summer.

Almost three-quarters of local markets (76 per cent) are registering fewer sales than a year ago over the past three months, with just under a quarter (24 per cent) seeing sales agreed hold up or grow.

Behind the regional averages, some of these markets stand out from both the national and their own region’s trends.

Warrington, Hull and Dundee are clear housing market hotspots, with a sustained increase in sales agreed and higher price growth than a year ago.

At the other end of the scale, Bath, Oxford and Harrow have all seen fewer sales and have moved from positive price growth twelve months ago to flat or negative levels now.

This data reveals why the national picture only tells you so much. Conditions vary sharply not just between regions, but between neighbouring towns, and even between property types within the same street.

Anyone buying or selling this year should speak to a local agent who can explain what's actually happening in their specific market, rather than relying on the national or even regional averages.

Richard Donnell, executive director at Zoopla, said: “This summer has seen a sharper slowdown than usual, with higher mortgage rates and political uncertainty both weighing on buyer confidence.

“But it’s not all one-way traffic, sales are still getting done, house prices are still rising in most of the country, and buyers have more room to negotiate than they’ve had in some time.

“Conditions can vary sharply from place to place with almost three-quarters of local markets seeing sales fall over the past three months, but a quarter are bucking that trend entirely.

“Sellers should speak to a local agent who knows what's actually happening on their own patch, rather than relying on the national picture.

“For anyone who doesn’t need to move, it’s entirely reasonable to wait and see how things settle.

“But for those with a genuine need to sell, our data shows September is when the market typically turns, and pricing to meet buyers now is what tends to get deals done, rather than waiting to see what autumn brings.”