5 Reasons We’re in a Buyers’ Housing Market
As part of our commitment to keeping you informed, this Housing Market Update dives into current trends in property prices and what these mean for your plans to move this autumn.
The autumn season traditionally sees a surge in housing market activity as people return from summer and look to secure their next home before the year ends. This year is no exception. In fact, we’re seeing 29% more sales than at this time last year, and a 17% increase in buyer enquiries. But this isn’t the heated post-pandemic market of recent years. Today’s buyers have more options, more time, and a stronger position to negotiate the right price.
Rightmove’s Tim Bannister explains: “With the ball in the buyer’s court and a larger selection to choose from, sellers need to price competitively to attract offers, especially with stretched affordability levels. This shift in approach from sellers is helping maintain strong sales numbers compared to the quieter market we saw last autumn.”
So, why exactly are we in a buyers’ market? Here’s a closer look:
1. House Price Growth Remains Low
Average asking price growth is often a sign of how confident sellers are when setting prices. This October, average asking prices rose by only 0.3%, far below the typical 1.3% increase seen at this time of year:
While prices have nudged up, the modest growth indicates that sellers are conscious of the need to attract buyers in a more competitive market.
2. Sellers Need to Price Competitively
With a more discerning buyer pool, sellers are finding that competitive pricing is essential. Those who set prices too high may have to adjust them later, particularly as buyers are prioritizing affordability and value in today’s market.
3. More Properties on the Market
There’s a greater selection of homes available for sale, with the number of listings per agent at the highest level since 2014. Compared to this time last year, there’s a 12% increase in properties on the market, giving buyers more choice and encouraging competition among sellers to stand out on buyers’ lists.
4. Homes Taking Longer to Sell
With more options available, buyers are taking their time. The national average time for a property to sell has risen to 61 days, a slight increase from the previous two months. This extra time allows buyers to weigh options and make more informed decisions without rushing.
5. Affordability Challenges
In recent years, affordability has become a concern for many buyers. Rightmove’s data shows that first-time buyer mortgage payments have increased by £350 since 2019, even though they’ve dropped £150 since the peak rates last year. Energy costs remain high, adding further pressure. Some buyers are waiting for clarity from the Autumn Budget, expecting favourable shifts in mortgage rates that may help their budgets.
Tim Bannister notes, “We’re not seeing a drop in activity, but some buyers are holding out for anticipated Budget news and potential mortgage rate cuts. However, many movers are choosing to move forward with their plans regardless.”
Looking Ahead to Next Year
As we head toward 2025, key economic events could shape housing activity. The Autumn Budget announcement and two remaining Bank of England rate decisions may influence interest rates. Bannister adds, “Despite some Budget-related uncertainty, we’re optimistic about a vibrant market in 2025. If the Budget brings clarity and interest rates decrease, we could see a boost in market confidence, as we experienced over the summer.”
If you're considering a move, contact our team to explore your options or arrange a valuation for your home with one of our local experts.