UK house prices jump for first time in months in latest sign of ‘autumn bounce’

Signs of an "autumn bounce" appeared in the housing market during September as average asking prices rose month on month for the first time since May, according to Rightmove .

The property website reported that the average price tag on a home put up for sale increased by 0.7 per cent, or £2,441, in September. This brings the national average asking price across Britain to £367,440.

This month’s increase exceeds the decade-long average September rise of 0.5 per cent. September is traditionally a more active period for the property sector as prospective buyers return from summer holidays.

Rightmove noted that heatwaves and the World Cup had resulted in a particularly quiet summer this year, creating the potential conditions for a larger rebound.

However, average prices remain 0.8 per cent lower than at the same point a year ago, and are 2.3 per cent below levels recorded at the start of summer.

It remains a challenging and crowded marketplace for prospective sellers, with the total number of homes available for sale reaching a 12-year high for this time of year, while buyer affordability remains stretched.

The Bank of England kept interest rates unchanged at 3.75 per cent last week – but average fixed mortgage rates have still been increasing in recent weeks amid rises in swap rates, which are used to price mortgages.

Finance experts said last week that fixed mortgage rates are influenced by financial markets’ expectations for what will happen, adding that home buyers are expected to be cautious and price-sensitive in the months ahead.

Rightmove said buyer demand is below this time last year as buyers grapple with affordability challenges.

Colleen Babcock, property expert at Rightmove, said: “Property prices have largely underperformed against the long-term average this year, but September is an exception.

“While buyers and sellers are returning to the market after the summer holidays to potentially fuel an autumn bounce, sellers face stiff competition from a 12-year high number of other homes for sale.

“With a large crowd of sellers chasing a smaller number of buyers, realism on pricing or a high-quality finish are absolutely key to attracting a buyer and making a sale.”

Rightmove’s analysis indicated that a home for sale typically has around a six in 10 (61 per cent) chance of finding a buyer – but this varies significantly across Britain.

In Scotland, nine in 10 (91 per cent) homes for sale are finding a buyer, which is partly due to Scotland’s buying and selling practices, the website said.