Property industry reacts to new Rightmove House Price Index

The average asking price for newly listed homes in Great Britain rose by 0.4% (+£1,517) this month, reaching £370,257, according to the latest Rightmove data.

This marks the first monthly increase since May, suggesting a degree of renewed confidence among sellers heading into the autumn market.

However, despite the monthly uptick, asking prices remain 0.1% (-£502) lower than at the same time last year—the first annual drop recorded since January 2024.

The slight year-on-year decline reflects a summer of competitive pricing, as sellers adjusted expectations to align with cautious buyer demand and economic uncertainty.

Industry reaction:

Matt Giggs, founder of The Giggs Group: “Sellers who reduced their price expectations over the summer are now creating more realistic conditions for sales, which is keeping things moving. We’re finding that well-presented, competitively priced homes are still attracting strong interest, and the high choice of homes for sale is also encouraging buyers. In Cambridgeshire, we’re seeing a steady market and aren’t feeling some of the drag that may be more apparent in London or further south. However, uncertainty around the Budget doesn’t help movers’ confidence, particularly those looking at higher-value homes. These buyers might be more hesitant to act until there’s clarity.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman: “Rightmove, though a historically-accurate identifier of market trends and enjoying 90%-plus agent coverage, only tracks asking prices. Asking prices are not achieved values but often owners’ or agents’ aspirational starting points and will determine if genuine buyers are attracted.

“In our offices, prices may still be rising marginally in more affordable areas but are softening elsewhere.

“We are still agreeing sales but the amount of choice and some unrealistic vendor ambitions are compromising activity.

“Unfortunately, only some vendors are getting the message. Unless your property is realistically priced you won’t stand out from the sizeable crowd and give yourself the best possible chance of attracting offers.”

Matt Thompson, head of sales at Chestertons: “Over the past months, the dynamics of London’s property market have changed, with some boroughs not experiencing the activity or price growth traditionally associated with a world capital such as London. While this has required buyers and sellers to adjust their approach, it has also created opportunities and enabled some house hunters to find properties that were previously outside their budget.

“After the summer holidays, we’ve already registered an uplift in enquiries from house hunters who are keen to proceed with their property purchase now as they believe the current market climate to be a temporary window of opportunity. Other buyers feel that they will have more clarity after the Autumn Budget which could then boost buyer confidence and fuel a sellers’ market sentiment towards the end of the year.”

Adam Feather, managing director, Robert Anthony Estate Agents: “Rising economic uncertainty, coupled with a recent surge in the number of properties coming to market, is placing increasing downward pressure on house prices.

With more homes available and buyers becoming more cautious due to concerns over economic uncertainty, inflation, and job security, sellers are finding it harder to secure sales at previously expected price levels.

“This shift in market dynamics is leading to more competitive pricing and longer time on the market, particularly in areas where supply now exceeds demand.

Tomer Aboody, director of MT Finance: “The affordability matrix still shows that first-time buyers are struggling to get on the ladder, with the average property price still higher than the average couple’s 4.5 times income multiple. Surely this has to change so that first-time buyers can afford to purchase their first home?

“Stamp duty reform is urgently needed to allow more homes to come to the market, so that downsizers are encouraged to sell and enabling families to buy. This will also free up more affordable flats and smaller houses for first-time buyers.

“The property cycle is a huge focal point of the economy in the UK, and any government discouraging this, or not actively trying to bolster this, will see the economy falter.”