This has reversed the 1.3% drop in August and means that prices have risen by 8.7% nationally over the past 12 months. In addition, buyer demand is up 20% on the pre-pandemic five-year average, though this is easing slightly from last year.
Recent price growth is concentrated in the middle and higher end of the market, with second stepper homes, usually with three or four bedrooms, increasing by 0.5% to a new record high of £340,513. Higher up the market prices rose by 1.3%, but first-time buyer properties saw more subdued growth, of 0.2% during the month.
Rightmove’s figures show that in Yorkshire and the Humber, prices have increased by 10.5% year on year, with the average property now priced at £242,100.
Patrick McCutcheon, head of residential at Dacre, Son & Hartley, which has 21 offices in West and North Yorkshire, said: “The housing market has been in the news a lot recently. The stamp duty cut announced in the mini-budget means that two-thirds of homes are now exempt from stamp duty for first-time buyers in England, and a third of all homes are exempt for all buyers. However, we then have rising interest rates pushing mortgage costs up, although this doesn’t appear to be deterring buyers in Yorkshire at the moment.
“Ultimately supply and demand remains a key factor for the property market and after being starved of stock for sale in recent years, we now have almost 50% more properties, either for sale or under offer, across our offices than this time last year. This is encouraging buyers who have delayed moving to act, and we continue to see high numbers of buyers registering with us who are searching for homes across West and North Yorkshire.”
Tim Bannister, Rightmove’s director of property science, commented: “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.
“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.
“The housing market continues to be extremely resilient even in the face of the economic headwinds that are stretching household finances. The rising cost of living is increasingly playing a role in some buyers’ considerations, as they look at their budgets and what they can afford.
“Demand has been softening over the last few months, but Friday’s announcement is likely to stimulate some more demand. If it does lead to a big jump in prospective buyers competing for the constrained number of properties for sale, then it could lead to some unseasonal price rises over the next few months. The first-time buyer threshold change means we could see more first-time buyers who can afford it making a jump to a bigger home as their first move. With more buyer demand we would also expect that the current trend of more properties coming to market will continue, offering more choice for buyers.”
