Autumn Surge: UK Housing Market Rebounds

As the UK housing market heads into autumn, we're seeing a surprising surge in activity. Homeowners and buyers are seizing a rare opportunity, driven by a combination of falling mortgage rates, a greater selection of properties, and renewed market confidence. Average asking prices are rising, sales are accelerating, and there's a clear shift in momentum compared to last year. In this blog, we'll explore what these trends mean for buyers and sellers, and how Rothmore Property can help you navigate this dynamic market.

Key Takeaways

• Average Asking Prices Increasing: September saw a 0.8% rise in average asking prices, reaching £370,759—double the usual September growth.
• Sales Activity Booming: Sales agreed are up 27% year-on-year, reflecting strong buyer demand.
• Sellers Are Optimistic: A 14% rise in new listings shows sellers' confidence, but buyers are still value-conscious.
• Cautious Optimism Prevails: Mortgage rates are lower, but still higher than in past years, making buyers cautious.

Rising Asking Prices: What’s Driving the Increase?

The latest figures from Rightmove reveal a 0.8% rise in the average asking price, bringing the national average to £370,759. This growth is driven by the Bank of England’s decision to reduce its base interest rate, making mortgages more affordable and prompting both buyers and sellers to act sooner than usual. A wider selection of homes on the market has also contributed to this increase, giving buyers more options and pushing prices upward.

Surge in Buyer Demand

Buyer demand has rebounded significantly, with a 27% increase in sales agreed compared to last year. Many buyers who had postponed their property search due to high mortgage rates are now returning to the market, taking advantage of the improved conditions. The number of available homes per estate agency branch has also increased to 33—the highest level since 2014—giving buyers a wider range of properties to choose from.

However, while more homes are available, affordability remains an issue for some buyers, with many taking their time to make purchasing decisions. This cautious approach reflects ongoing uncertainties about interest rates and overall market stability.

Regional Trends: Varying Growth Across the UK

Not all regions are experiencing the same level of growth. Scotland and the West Midlands have recorded the highest monthly asking price increases at 1.1%, with average home prices at £194,180 and £293,796, respectively. The North East of England leads in annual growth, with a 5% increase in asking prices year-on-year, pushing the average to £193,706.

Meanwhile, regions like the South West and East of England have seen more modest figures. The South West, for example, experienced a 0.8% decrease in asking prices for September, though prices remain 1% higher than last year. These regional variations highlight the importance of understanding local market dynamics when buying or selling.

How Falling Mortgage Rates Are Shaping the Market

Mortgage rates have played a pivotal role in the current market surge. The average 5-year fixed mortgage rate now stands at 4.67%, a notable decrease from the 6.11% peak in July 2023. This reduction has given buyers more confidence, with many feeling that now is the right time to make their move. However, mortgage rates are still significantly higher than they were just a few years ago, so affordability remains a challenge for some.

The Bank of England’s next interest rate decision, expected on 19th September, will be closely watched. Any further cuts could boost activity even more, but buyers and sellers should remain prepared for fluctuations.

Rothmore Property: Helping You Find the Right Investment

Navigating the complexities of the UK property market can be overwhelming, especially in this evolving landscape. At Rothmore Property, we specialise in helping buyers, sellers, and investors make informed decisions. Whether you're looking for your first home, moving up the property ladder, or seeking a lucrative investment, our team provides expert guidance tailored to your needs.

We focus on key UK locations, such as Manchester, London, and the North West, which are showing resilience and growth. Our deep market knowledge allows us to advise on the best locations for capital appreciation, ensuring you maximise your investment potential. From identifying the right property to advising on mortgage options, Rothmore Property is here to support you every step of the way.

Conclusion

This autumn, the UK housing market is seeing signs of recovery, with rising asking prices and increased buyer demand. Lower mortgage rates have created a window of opportunity, but cautious optimism remains. Buyers are taking their time, and pricing strategies are essential for sellers looking to secure a deal.

If you're considering entering the market, now may be the perfect time to act—but be sure to seek expert advice to make informed decisions. Rothmore Property is dedicated to helping you make the most of this evolving market, whether you're buying, selling, or investing. Our team is here to guide you through every step of the process.