The average price of property coming to the market increased by 0.7%, or £2,587, to reach £367,760.
This month’s rise in new seller asking prices is in line with the ten-year September average increase of 0.6%, as the middle and high-end market sectors continues to drive price rises, with a new record average asking price of £340,513 in the “second-stepper” category (three bedrooms and non-detached with four bedrooms).
The stamp duty cut from Friday’s mini-budget means that two-thirds of homes – 66% – are now exempt from stamp duty for first-time buyers in England, and a third of all homes are exempt for all buyers (33%)
Average monthly mortgage payments for new first-time buyers are currently £1,057, which is 40% of an average gross salary for the first time since November 2012. They will jump to £1,114 per month if lenders pass on the latest interest rate rise of 0.5%
The market remains surprisingly resilient despite growing economic pressures, with buyer demand up 20% on the pre-pandemic five-year average, and the stamp duty cut could stimulate some more demand over the next few months.
The number of homes coming to market has risen back to 2019 levels, giving buyers more choice.
Rightmove’s Tim Bannister said: “The end of the summer break and the start of the new school term is usually a time when we see renewed focus from buyers, as those with plans to move see an autumn window of opportunity ahead of them.
“Price growth this month in the middle and high-end sectors highlights that even when finances are more stretched, many of the reasons for looking to move up the ladder remain. This might be a growing family, or needing more space for other reasons, and the numbers suggest that those who can afford to are still prioritising moving.
“Prices are likely to remain strong while demand continues to outweigh supply. However, it is as important as ever to price competitively, especially in the sectors where there is now more choice, as there is a fine line between a realistically priced home and a home that feels overpriced when many buyers are making every pound count.”
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