UK house sales are up 29% compared to a year ago, but house prices are levelling off as the number of homes coming to market reaches the highest level in 10 years.
Average house prices rose 0.3% in October, according to Rightmove, which noted that this is lower than the historical autumn average of 1.3%.
It put this down to more supply of houses coming to market, with 12% more homes available to buy than a year ago. Sellers were also being cautioned by estate agents to price their homes attractively for what it called “affordability-stretched buyers”, said Rightmove.
This is the highest per estate agent since 2014, though numbers of estate agents fell in the period.
Affordability for buyers remains an issue with the average two-year and five-year fixed rate mortgage rates rising from last week, the first weekly increase since May as lenders including NatWest, Halifax and Barclays were among those nudging up rates.
“We’re not seeing activity slow down, but some estate agents report that some movers are now waiting for Budget clarity and anticipated cheaper mortgage rates later this year,” said Rightmove’s director of property science, Tim Bannister.
However, he conceded that other agents are stating that movers are “largely just getting on with plans”.
With financial markets predicting two Bank of England rate cuts before the end of the year, he sees a positive outlook for 2025.
“Despite a Budget-shaped cloud on the horizon, the big picture still looks positive for the market heading into 2025,” says Bannister.
“Market activity remains strong, despite affordability pressures on movers.
“Once we have more certainty about the contents of the Budget, hopefully followed by speedy second and third Bank Rate cuts, we could see another surge in market optimism like we had in the summer.
“Affordability is still the biggest barrier facing many movers, with mortgage rates still high, so if the expected two cuts come to fruition it could be the boost that many buyers-in-waiting need. 2025 could see the return of the previously priced out buyer.”