Autumn has started strongly for those looking to sell, with the news that September has seen an 0.8% rise in average new seller asking prices. The figure is double the long-term average and up by 1.2% on September 2023 to £370,759 as buyer and seller activity also increases. In London, prices are up by 1.4% for the year and 0.7% on the month to £682,375.
So, what has brought buyers back to the market and stimulated the price rise? Buyers have been encouraged by falling mortgage rates prompted by the Bank of England’s first cut in the base rate in four years in August. The rate was held again at 5% in September after inflation stayed static at 2.2% for the second month in a row but one more base rate cut is expected before the end of the year which could see more activity as a result.
More sellers and buyers are now active in the market
The race to sell has begun to accelerate following the starting gun of the summer’s base rate cut, with the number of new sellers up by 14% on the same time last year. Meanwhile, the average number of homes for sale per estate agent is at its highest since 2014.
This renewed confidence seems to be matched by buyer demand too, with the number of agreed sales up by 27% year-on-year, according to Rightmove’s September data. The number of potential buyers is also up by 15% compared to the same time last year.
The impact of a second base rate cut and the Budget
These are encouraging signs. But the data shows that buyers are still cautious and pushing for the right price with a 60-day average for a property to secure its buyer nationally. The figure is three days more than last year despite the improvement in market conditions. In London, it’s now taking an average of 63 days to find a buyer.
The hesitation shows the importance of realistic pricing if you are putting your property up for sale in London, with well-priced homes selling quickly and overpriced homes failing to sell fast or without price cuts. For many buyers, it’s the still inflated mortgage rates that are putting them off buying just now – another indication of the need for realistic pricing. The Rightmove figures show that the average 5-year fixed mortgage rate is still nearly double what it was three years ago at 4.67%.
Over the next few weeks, the momentum of sales activity is expected to continue, particularly with anticipation around the next base rate cut. Any housing-related announcements in the Budget at the end of October could impact buyer and seller activity, however.
For the moment at least, it seems confidence has returned. And that’s good news for buyers who want to be living in London and those looking to sell in the capital.
If you are looking to sell or buy, or maybe you just want some professional advice from a 5-star rated, multi-award-winning agency, please get in touch on 0207 231 0002 or email welcome@living-london.net
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