THE number of homes for sale hit a ten year high in October, according to Rightmove.
Across Britain the number of properties put on the market was 12% higher than a year ago.
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Meanwhile, the number of people contacting estate agents about properties for sale was up by 17% compared with the same period last year.
Rightmove said the number of homes on the market is driving up competition between sellers as potential homeowners continue to find their budgets are stretched.
A greater choice of homes is giving buyers more negotiating power, which is helping to stop prices from rising rapidly.
Meanwhile, some buyers are waiting for clarity from this month’s Budget and cheaper mortgage rates before they make an offer.
Read more on house prices
As a result, the typical price being asked for a home coming onto the market increased by £1,199, or 0.3%, this month to reach £371,958.
This is much lower than the average seasonal 1.3% monthly increase at this time of year.
Meanwhile, asking prices are 1% higher than a year ago, when a typical home was listed at £368,231, around £3,727 less than it would be now.
London boasts the highest average asking price of any UK region.
A typical home in the capital is worth £694,906 after prices rose by 1.1% year on year.
Homes in the South East are also well above the national average, with a typical property worth £483,780.
Prices in the region are down 0.6% in the last year but still remain well above other regions.
The North East is still the cheapest region in England, with a typical home worth £192,742, 4.9% higher than a year ago.
Tim Bannister, a property expert at Rightmove, warned that the ball is now “in the buyer’s court”, which means sellers need to price competitively to find a buyer.
He added: “The big picture still looks positive for the market heading into 2025. Market activity remains strong, despite affordability pressures on movers.
Different types of mortgages
We break down all you need to know about mortgages and what categories they fall into.
A fixed rate mortgage provides an interest rate that remains the same for an agreed period such as two, five or even 10 years.
Your monthly repayments would remain the same for the whole deal period.
There are a few different types of variable mortgages and, as the name suggests, the rates can change.
A tracker mortgage sets your rate a certain percentage above or below an external benchmark.
This is usually the Bank of England base rate or a bank may have its figure.
If the base rate rises, so will your mortgage but if it drops then your monthly repayments will be reduced.
A standard variable rate (SVR) is a default rate offered by banks. You usually revert to this at the end of a fixed deal term, unless you get a new one.
SVRs are generally higher than other types of mortgage, so if you’re on one then you’re likely to be paying more than you need to.
Variable rate mortgages often don’t have exit fees while a fixed rate could do.
“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.”
The average 5-year mortgage rate is now 4.61%, up slightly from 4.55% last week.
This is still a big improvement from the average of 6.11% when rates peaked in July 2023.
With more homes being put on the market the average time they are taking to sell has increased.
What it means for you
Rightmove said it now takes 61 days to secure a buyer, a slight uptick from an average of 59 days in the summer.
Competition for buyers is particularly fierce at the top of the market.
The number of four-bedroom detached houses and five-bedroom-plus homes available for sale is 17% ahead of last year.
Marc von Grundherr, director of Benham and Reeves in London, said monthly property transactions are now at their strongest since 2022.
He said: “Mortgage approval levels have been strengthening for much of this year and we’re now seeing this increase in buyer demand start to filter through to actual sales.
“This improving market momentum has also helped to tempt many sellers back into the market who had previously put their plans to move on pause.”
Who else tracks house prices?
Several big banks also track property prices and release monthly indexes.
Halifax is part of Lloyds Banking Group, which is the UK’s biggest mortgage lender.
It has been tracking house prices since 1983 and published a monthly house price index based on the mortgage data it holds.
Nationwide also publishes a monthly index which tracks the average price of homes on which it provides mortgages.
As their figures are based on mortgage approvals they don’t include cash buyers who purchase a property without needing a mortgage.
The official measure of house prices is from the Office for National Statistics (ONS), which uses data from the Land Registry where the actual sold price is recorded.
These figures are the most accurate of all of the indexes but the figures are released three months after the homes are sold, so there is a big time lag.
Online property websites Rightmove and Zoopla also publish monthly house price data.
Rightmove’s data is based on asking prices from the properties listed on its website.
Meanwhile Zoopla uses sold prices, mortgage valuations and data on agreed sales.
Neither website takes into account the price a property was sold for, unlike the ONS.
Some properties could end up being sold for higher or lower, while others may not sell at all.
Here’s the latest data from other indexes:
- Nationwide: House prices rose by 0.7% in September and increased by 3.2% annually. A typical property is now worth £266,094.
- ONS: property prices increased by 2.8% annually to £293,000 in the year to August.
- Zoopla: House prices rose by 0.7% in the year to August, with a typical property now worth £267,000.
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