October Property Market Analysis

As the season’s change, so do attitudes to moving home. We noted a positive shift in September, with more movers getting in touch. We’re happy to say the industry’s leading metrics also reflected this air of optimism.  

Let’s start with house prices. The most accurate are those released by HM Land Registry but these are published with a time lag and we won’t see September’s official figures until later this year. What we do have are house prices from other leading property players.   

Sellers were confident in September

Rightmove’s monthly average asking price is a good way to measure sentiment in the sales market. In September, the average asking price of a UK home was £370,759. This was almost £3,000 more than in August and an increase that’s double the seasonal average.   

House prices hit 2-year high

The Halifax released its house price index at the start of September, with figures based on mortgage lending. It says the typical UK property costs £292,505 – the highest since August 2022. Tracking the trends, house prices increased by 0.3% in the last month, and rose 4.3% annually.   

There were some regional differences. Northern Ireland posted the strongest house price growth, with values up 9.8% year-on-year. Wales followed, with its average house price increasing 5.5% annually. Scotland’s value adjustment was more modest – with homes costing 1.7% more than in 2023.   

Rightmove’s figures also showed that September was a great start to the autumn selling season. When compared to the same period in 2023, there had been a 15% increase in the number of enquiries to estate agents. The number of sales agreed was also up – rising 27% on a year-on-year basis.   

Like house prices, rents are also rising. Although at its lowest level for three years, a 5.4% monthly increase still makes new tenancies more expensive, says Zoopla. How much more tenants will pay depends on where they look. Rents in core cities are rising more slowly, at 5.8%. In contrast, towns that border core cities are becoming more costly, with rental increases of between 6.8% and 7.4%.  

In September, Rightmove shone a spotlight on the busiest rental markets according to tenant enquiries. Although there was a UK average of 19 applicants chasing each available rental property, there were exceptional pockets of demand. The demand/supply imbalance was most keenly felt in Wrexham, where the average letting agent received 54 enquiries for every rental home that came onto the market. It was a similar picture in Glasgow (52 enquiries per available rental) and Bristol (51).  

Rental reforms make progress

In September, Labour’s Renters’ Rights Bill had its first reading in Parliament. While the new Government has repeated many of the pledges made by the Conservatives when it was in power, there are additions to note and one directly links to how landlords can use high demand to achieve a better rent.  

Labour would like to ban bidding wars between tenants – a scenario that can happen when more than one renter wants to secure the same property. Also up for reform are landlord possession grounds, the frequency of rent rises and rental arrears grounds. Section 21 notices will still be banned, and landlords will be prohibited from discriminating against tenants with pets and/or children, and those in receipt of benefits.  

EPC requirements under scrutiny

The Government also confirmed it is revisiting the proposal to make private rented sector homes more energy efficient. It is seeking to upgrade the mandatory EPC grade required from at least an E to at least a C. A consultation process is now underway.   

If you would like to know more about your local property market, please get in touch.