Weekly Real Estate News
Britain’s autumn housing market is showing signs of strain beneath a seasonal rise in asking prices. New sellers increased their average asking price by 1% in October, but that was less than the 1.3% gain typically recorded for the month, while mortgage costs and weaker buyer demand weighed on transactions.
The average asking price of a newly listed home reached £371,015, an increase of £3,575 from September but 0.1% below a year earlier, according to Rightmove figures reported by Reuters on October 18. The report covers listings marketed from September 13 through October 10. Its price measure tracks sellers’ initial expectations, not completed sale prices, and is not seasonally adjusted.
The distinction matters. October normally brings an autumn increase in asking prices as sellers return to the market. This year’s smaller-than-usual rise points to restraint despite a positive headline number. The monthly increase also follows a 0.7% rise in September, when the average stood at £367,440, according to Rightmove’s published September House Price Index.
Borrowing costs change the equation
Rightmove’s October survey put the average two-year fixed mortgage rate at 5.55%, up from 5.29% in September and 4.25% in February. Those figures reflect the report’s measurement period, rather than a guaranteed rate available to an individual borrower. The firm’s separately updated mortgage-rate tracker showed 5.53% on October 17, illustrating why dates and data series matter when comparing mortgage costs.
Higher rates reduce purchasing power for borrowers who have not locked financing, and they complicate moves for households giving up older, cheaper loans. Rightmove property expert Colleen Babcock said higher mortgage costs were beginning to affect affordability even in lower-priced markets, narrowing the areas and types of property buyers could consider.
The pressure is showing up in places that had previously been relatively resilient. New seller asking prices fell 2% in the North East, 1.9% in Scotland, 0.6% in the North West and 0.3% in Wales, according to figures reported by UK mortgage trade publication The Intermediary. Yorkshire and the Humber recorded a modest 0.3% gain.
More choice, fewer agreements
Sales agreed were 8% below the year-earlier level. Inquiries from prospective buyers fell 9%, even as the flow of new listings increased 3%, according to the figures provided by Rightmove to the Press Association. The stock of homes for sale was the highest for this point in the year since 2014.
That combination gives buyers more options but also puts pressure on sellers to set competitive prices. It does not establish a comparable decline in completed sales or property values: asking-price data, agreed-sale activity and completed transaction prices measure different stages of the market.
London’s average asking price rose 2.5% during the month to £673,942, but remained 1.7% lower than a year earlier after a weak summer. The apparent rebound therefore offers little evidence by itself of a sustained recovery.
For mortgage lenders, brokers and estate agents, the report describes a market where affordability is again driving decisions. The next test will be whether borrowing costs stabilize enough to revive agreed sales, or whether the growing supply of listings forces more sellers to adjust their expectations. Rightmove’s October release was reported by Reuters and other outlets before its public House Price Index page had been updated from September; WRE will continue to check the published primary data as it becomes available.
