The average price of property coming to market has increased by 0.7%, or £2,587, this month, to £367,760, as the housing market remains surprisingly resilient despite growing economic pressures, according to the latest data from Rightmove.
This month’s property price rise in new seller asking prices is in line with the ten-year September average increase of 0.6%
Property industry reaction:
Adam Feather, managing director of Robert Anthony, commented: “Although market activity has weakened in recent months, the latest Rightmove figures revealing that asking prices are rising again reflects the fact that overall, the numbers remain, reflecting the continuing huge mismatch between supply and demand.”
Tomer Aboody, director of property lender MT Finance, said: “Although the housing market is standing strong against inflation and higher mortgage rates, it’s only a matter of time before the real pinch is felt across the board. The Government may have introduced assistance aimed at helping first-time buyers in particular with adjustments to stamp duty but this can only help in the short term.
“Those who took out two-year fixed-rate mortgages in the midst of the pandemic and are now refinancing are facing mortgage payment hikes of up to three times what they initially paid. This is having a huge impact on wallets, especially as the cost of living is also going up. The housing market will follow suit and adjust accordingly.”
Matthew Thompson, head of sales at Chestertons, said: “We are encountering an increasing number of house hunters who want to secure a property as soon as possible and state taking out a fixed rate mortgage. This has contributed to September’s property market remaining busy and competitive. As the cost-of-living crisis is looming, we also witness some buyers compromising on their priorities in order to secure a property under their initial budget.”
Richard Davies, MD of Chestertons, added: “As the nation is facing rising interest rates and a cost of living crisis, we welcome the government’s cut of stamp duty which will enable many house hunters to pursue their property purchase. With Help to Buy coming to an end, the tax cut will be of particular importance to first-time buyers who have always been facing challenging market conditions in London.
“However, despite the overall positive gesture of cutting stamp duty, the saving could trigger house hunters who previously put their property search on hold to resume their activity. If this added demand isn’t met swiftly, the tax cut could boost the existing imbalance of supply and demand which consequently leads to an initial spike in property prices.”