Buyers' market as number of homes put up for sale soars - Rightmove

21st Oct 2024 07:15

(Sharecast News) - The number of homes being put up for sale surged in October, industry research showed on Monday, holding back selling prices.

According to the latest house price index from Rightmove, the number of available homes for sale was up 12% year-on-year, the highest per estate agent since 2014.

Underlying buyer demand also remained strong, with the number of people contacting agents spiking 17%, despite uncertainty around the forthcoming Budget.

But it meant that house price growth was curtailed and the national average asking price edged up just 0.3% to £371,958. Rightmove said that the "muted" autumn bounce was well below average growth for October of 1.3%.

"With a greater choice of properties to consider, buyers are making use of their increased negotiating power, helping to keep price rises subdued," it noted.

The number of sales being agreed surged 29% as the market rebounded strongly from quieter conditions a year previously.

Tim Bannister, director of property science at Rightmove, said: "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.

"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."

The Bank of England, which ramped up interest rates to tackle surging inflation, cut the cost of borrowing in August for the first time in four years.

Rates were then left on hold in September, but another 25 basis point reduction is widely expected at the Monetary Policy Committee's next meeting in November. Some believe a further cut will then follow shortly afterwards, in December.

Rightmove said that the 2025 outlook for the housing market remained positive, although it acknowledged ongoing affordability pressures.