As the property market transitions into autumn, the traditionally busy season appears to be starting earlier than expected. September has seen a 0.8% rise in average asking prices for new sellers, equating to an increase of £2,974. The current average asking price now stands at £370,759. This increase is double the long-term average for this time of year, marking a significant shift from last year’s more subdued market.
Early Autumn Action: What’s Driving Market Activity?
There are several reasons behind this early surge in activity. Mortgage rates are trending downwards, giving potential buyers and sellers a window of opportunity to act. Additionally, there is more property choice available, with the average number of homes per estate agent reaching its highest since 2014.
A key factor in this momentum is the rebound in buyer demand, with sales agreed between buyers and sellers up by 27% compared to this time last year. Homeowners are more confident to list their properties, as new sellers coming to the market have increased by 14% year-on-year.
The Impact of Mortgage Rates on Buyer Decisions
One of the most significant influences on the current market is the fluctuation in mortgage rates. While the average 5-year fixed mortgage rate remains at 4.67%, it is a notable decrease from the peak of 6.11% seen in July 2023. However, this figure is still nearly double the rate of 2.34% from just three years ago, which continues to affect buyer affordability. The market remains cautious, with many buyers waiting for further reductions in mortgage rates before making a move.
Buyer and Seller Confidence on the Rise
Despite some caution, both buyers and sellers are feeling more optimistic about market conditions. The number of potential buyers contacting agents is up by 15%, indicating that the appetite for property is growing. The supply of homes for sale is also on the rise, with the average estate agency now offering 33 homes, the highest figure in nearly a decade.
However, the market is not without its challenges. It currently takes an average of 60 days for a property to find a buyer—three days longer than this time last year. This reflects a two-speed market where well-priced homes attract immediate interest, while overpriced or poorly presented properties struggle to gain attention.
What to Expect as Autumn Unfolds
Looking ahead, several uncertainties remain, particularly around the upcoming Autumn Statement on October 30th. Announcements regarding capital gains tax and potential Bank Rate cuts could have a significant impact on market activity. Many former rental homes are already being listed for sale in anticipation of possible tax changes, with landlords opting to sell up.
While the market is experiencing positive momentum, it remains sensitive to external factors. Sellers need to price competitively to attract choosy buyers who are taking their time to browse through the increased number of available properties.
Conclusion: Act Now but Stay Cautious
The early start to the autumn property market presents a promising opportunity for movers, with improved market conditions and downward-trending mortgage rates. However, with affordability still stretched for many and potential economic shifts on the horizon, it’s essential for sellers to remain realistic in their pricing strategies to secure a successful sale. As autumn progresses, we expect market momentum to continue, but caution is advised for both buyers and sellers.
At Touchstone London, our team of experienced property professionals is here to help. Whether you’re a first-time buyer, a seasoned investor, or a homeowner looking to sell, we provide personalised advice tailored to your specific needs.
Don’t hesitate—contact one of our experts today to navigate the market with confidence and take advantage of the best opportunities this autumn.