UK home buyer demand "remains strong", though prices this month rose at a softer pace than usual, according to figures from property portal Rightmove PLC.
UK house prices increase in September
Average new seller asking prices in October edged up 0.3% to GBP371,958 from GBP370,759 in September, when prices had risen 0.8% from August. Rightmove said the October change was "much lower" than the "average seasonal" 1.3% on-month rise for this month.
On an annual basis, the average asking price in October rose 1.0%, slowing from 1.2% growth the prior month.
Rightmove said the number of sales being agreed in October jumped 29% on-year, "a strong rebound from the weaker market a year ago".
"With a greater choice of properties to consider, buyers are making use of their increased negotiating power, helping to keep price rises subdued," Rightmove commented.
Rightmove's comment
There was a 17% rise in people contacting agents about homes for sale - suggesting that underlying buyer demand "remains strong" - and the number of available properties rose 12% to "the highest per estate agent since 2014, intensifying competition to find affordability-stretched buyers, some of whom may also have pre-budget jitters".
"This month's subdued price growth comes as buyer choice soars to a level not seen since 2014. With the ball in the buyer's court and the pick of a big crop to choose from, sellers need to be pricing competitively to find a buyer, particularly with affordability still very stretched," commented Rightmove analyst Tim Bannister, adding: "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.
