UK house prices have jumped by nearly £3,000 in September, according to Rightmove.
Across Britain, the typical price being asked for a home coming onto the market increased by 0.8% or £2,974 to reach £370,759.
However, the picture across Great Britain is mixed, with most regions only seeing a fairly moderate increase in house prices[/caption]
September usually sees a month-on-month price jump, but this year’s increase of 0.8% is double the long-term average, Rightmove said.
The strong increase has been driven by a recovery in activity this summer compared with the much more subdued market in 2023.
Several factors are thought to be giving the autumn housing market a boost.
The report said mortgage rates have been edging downwards, buyer property choice has grown, and earnings are now rising faster than both inflation and house price growth.
However, the picture across Great Britain is mixed, with most regions only seeing a fairly moderate increase in house prices.
The North East has the strongest property price growth of any region in Great Britain, rising by 5% annually in September.
This means the average property price in the North West is now £193,706.
However, house prices in the East of England and South West have seen a year-on-year decline of up to 0.8%.
The average property price in the South West is now £387,389 and £418,110 in the East of England.
Unsurprisingly, London continues to have the most expensive property prices in the UK, now averaging £682,375, up 1.4% compared to last year.
Rightmove added that there are still price uncertainties ahead, including the timing of another Bank of England base rate cut and the announcements to be made in the October Budget.
Tim Bannister, Rightmove’s director of property science, said: “The autumn action has started early with a strong rebound in activity from both buyers and sellers compared to the subdued market at this time last year, continuing the momentum from the better-than-expected summer market.
“The certainty of a new Government followed by the first (Bank of England base rate) cut in four years invigorated the market, opening a window of opportunity for movers to act.
“Some of this will be pent-up demand from those who had to hit the pause button until now.
“However, windows of opportunity tend to need a momentum of good news to stay open, and there are still uncertainties ahead which could cause some of the current market activity to ease.”
What it means for you
Rightmove said the average property is still taking 60 days to find a buyer, three days longer than at this time last year.
This suggests that buyers are taking their time to find the right home at the right price.
Mr Bannister added: “Homeowners who are thinking of coming to market soon shouldn’t let the increased activity make them over-optimistic and must price competitively to sell.
“With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price.”
The Sun view on rising house prices
By Laura Purkess, consumer features editor and consumer champion, The Sun
THESE latest figures are finally a sign that the housing market is recovering from Liz Truss’ mini-budget of 2022.
The latest data shows the Bank of England finally cutting its base rate for the first time in four and a half years has had the desired effect, with lenders slowly reducing mortgage rates.
High rates and a stagnant market have left homeowners with the thankless task of paying significant sums every month while seeing little gain long-term in the way of increased equity in their homes.
So, rising prices may give households looking to move some confidence to start looking around, which will hopefully lead to even more movement in the market.
However, while rising house prices and easing mortgage costs are good news for the market, affordability is still a major challenge for first-time buyers, and mortgage rates are still far higher than two years ago.
Further rate cuts, coupled with further support from the government to get people onto the housing ladder, will hopefully keep pushing the market in the right direction.
Who else tracks house prices?
Halifax is part of Lloyds Group, which is the UK’s biggest mortgage lender.
Its monthly house price index is based on the mortgage data it holds and has been going since 1983.
It’s one of several key barometers of the property market.
The official measure of house prices is from the Office for National Statistics, which uses data from the Land Registry where the actual sold price is recorded.
This is the most accurate of all the indices, but the figures come out three months after the homes are sold, so there’s a big time lag.
Halifax and Nationwide each publish a monthly index tracking the average prices of homes on which they provide mortgages.
While they do adjust their figures to iron out big outliers, both lenders measure average house prices based on the properties they see.
As it’s based on mortgage approvals, cash buyers are not included.
Rightmove and Zoopla also publish monthly house price data.
The former is based on asking prices from the property listings on its website.
The latter uses sold prices, mortgage valuations and data on agreed sales.
Neither takes into account the price a property actually sold for like the ONS Land Registry, which could end up being higher or lower and some might not even sell at all.
Here’s the latest data from other indices:
- Nationwide – house prices fell 0.2% in August and increased 2.4% annually, with the average property now at £265,375
- ONS – house prices increased by 0.5% in June and 2.7% annually, with the average property now at £288,000.
- Rightmove – house prices increased by 0.8% in September, and increased 1.2% annually, with the average new seller asking price now at £370,759.
- Zoopla – house prices increased 0.5% in July, and by the same annually, with the average house price now £266,400.
How to save for your first home
HAVE you ever wondered how first-time buyers manage to go from savers to homeowners?
Getting a foot on the property ladder might seem like a daunting task, but The Sun’s My First Home feature allows you to find out exactly what it takes to finally get the keys to your own place.
Leanne Gem managed to buy her £456,000 four-bed house with an “underrated scheme”.
Karis Jacobs and her husband George used the 50/50 method to buy their first home just two years after losing their jobs.
Parents Chae and Cem used a “DIY Help to Buy scheme” to buy their £466,000 first home.
Anupam and his wife Shrabanti lost £6,000 free cash when buying their first home – here’s how you can avoid it.
What about rental costs?
Rightmove’s latest house price report was released as a lettings index from Hamptons found that the gap between rents in the North and South of England has closed to its smallest level since its records started in 2013.
In August, the average new tenancy in the South of England cost £1,318 per month, 37% more than in North England, where rents averaged £960 per month.
This gap has narrowed from 43% in August 2023, which is down from a peak of 55% in November 2021, Hamptons said.
Aneisha Beveridge, head of research at Hamptons, said: “Much like house prices, the rental North-South divide has been closing for the last five years.
“The narrowing reflects the cyclical nature of the housing market with house prices in North England rising 31%, nearly double the southern rate.
“These figures have been mirrored in the rental market, with rents in North England quickly playing catch up.
“But it’s only been in the last year that the gap has really started to narrow beyond the point we’ve previously seen.
“This has been driven by the slowing of rental growth across southern England caused by greater affordability pressures.
“While tenants in the South have seen weaker growth in percentage terms, in cash terms, they’ve faced big rises.”
