The average price of a new home coming onto the market in September increased marginally by £1,386 or 0.4%, according to Rightmove’s latest figures, which is lower than usual for this time of year, but the Bank of England’s decision to hold the base rate has fuelled optimism that the market could see an autumn pick-up.
Despite this minor increase, the UK’s average asking price is still trailing at a 0.4% year-on-year decline, standing at £366,281. However, Yorkshire and the Humber bucked the national trend and was one of the few regions where asking prices rose, increasing by 0.9% in the past month. This means the average asking price in Yorkshire and the Humber now stands at £246,411 which is a 1.8% increase on this time last year.
Patrick McCutcheon, head of residential said: “Although Yorkshire’s housing market has been somewhat subdued over summer, due to interest rate rises and the usual summer holiday distractions, homes are still selling. This is largely due to there still being a shortage of property for sale in the last couple of years. Plus, since the start of September we’ve experienced an uplift in enquiries from both potential buyers and sellers.
“However, with Rightmove’s data revealing that 36.3% of properties currently for sale have had a price reduction, it reinforces the importance of using a local estate agent with a solid understanding of the local market. The market has shifted in recent months and sellers who insist on over-pricing are likely to be left disappointed.
“The Bank of England’s decision to hold the base rate at 5.25% has also been met with optimism amongst potential buyers and should mean that mortgage rates continue to fall, which is a trend that we’ve been seeing since July. As lenders become more competitive, the pace of reductions could also increase in the coming weeks. Crucially, as market conditions and mortgage rates stabilise, we’re also seeing fewer fall-throughs.”
Tim Bannister, Rightmove’s director of property science, commented: “It’s been a slower than usual August, so all eyes will be on market activity over the next few weeks, which will set the trend for the rest of the year. The combination of 14 consecutive Bank of England interest rate rises and many buyers and sellers still catching up on lost pandemic holidays has contributed to a bigger than expected summer lull, though we still anticipate an autumn bounce.
“Market conditions still vary considerably in different locations, and so a local estate agent will be best placed to advise sellers to give them the best chance of finding a buyer this autumn.”