Rightmove: October prices rise by 0.9%

John Hewitt Jones

October 17, 2016

row of houses2

The price of property coming to market has risen by 0.9% so far in October, the Rightmove property index has found.

The shift follows consecutive falls in the price of property during July and August.

This month’s increase of 0.9% (+£2,623) puts the national average at £309,122, just 0.4% (£1,349) short of the record set in June of this year.

Annual house price growth continues to slow

The report also found a North/South divide in the property market, with stock rising in the North to create a ‘sellers’ market’ and falling down South to give buyers the upper hand.

Miles Shipside, Rightmove director and housing market analyst, said: “After the referendum result and the usual summer slowdown, estate agents’ experiences appear to fall into one of two camps, with a definite north/south divide.

“Agents in the Northern half of the country reported a quiet week or two after the surprise result of the Brexit vote, but most then saw a quick return to good levels of buyer enquiries and subsequent sales.”

Sales in September are down 4% nationally compared to the same period in 2015, and up 6% on 2014.

The North West, North East, Yorkshire and the Humber, East Midlands, West Midlands and Wales saw an 11% fall in the total available stock for sale compared to the same period in 2015.

In contrast September’s figures for Greater London, South East, East of England and South West saw total available stock for sale rise by 16% compared to the same period in 2015.

While sales have picked up after the summer months, the number of sales agreed is down across all four southern regions, indicative of less buyer activity than in September 2015. The average across all four regions is a fall in sales agreed of 10%.

Jeremy Duncombe, director, Legal & General Mortgage Club, said: “September has clearly marked a return to the usual month-on-month increases in property prices that we saw earlier in the year. An ongoing lack of supply and continuing demand for housing means it’s business-as-usual for the property market, as house prices climb even higher.

“Although some may welcome the price of their property increasing, this trend will only make the prospect of homeownership more unattainable for those who are yet to make their first step on the housing ladder. It’s time to make a break with the past when it comes to housing policy and embark on a housebuilding revolution to improve the opportunities for people in all housing sectors.”

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