Average new seller asking prices increased by only 0.3% (£1,199) in October to £371,958, according to the latest house price index from Rightmove.
Although market activity remains strong, the lower-than-normal price increase comes as seller competition and buyer choice increases.
There has been a 29% year-on-year increase in sales, coupled with a 17% year-on-year rise in the number of people contacting agents about homes for sale.
The number of available homes for sale is 12% higher than a year ago and represents the highest per estate agent since 2014.
This muted Autumn price rise comes as buyer choice has increased to its highest level in ten years, putting downwards pressure on price growth.
Affordability pressures remain, and while data suggests a positive outlook for 2025, some buyers could be waiting for Budget announcements and lower mortgage rates before making a move.
The average five-year fixed mortgage rate is now 4.61%, up from 4.55% last week, the first weekly increase since May.
Average energy bills for a home with an energy performance certificate rating of D is £2,465 – and increase of 10% since last month.
Tim Bannister, director of property at Rightmove, commented: “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.
“Some sellers appear to be acting on this caution, contributing to limited price growth and better buyer affordability. This is helping to keep the number of sales being agreed consistently and strongly ahead of the quieter market of this time last year. 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. However, others state that movers are largely just getting on with plans.
“Despite a Budget-shaped cloud on the horizon, the big picture still looks positive for the market heading into 2025. Market activity remains strong, despite affordability pressures on movers. Once we have more certainty about the contents of the Budget, hopefully followed by speedy second and third Bank Rate cuts, we could see another surge in market optimism like we had in the Summer.
“Affordability is still the biggest barrier facing many movers, with mortgage rates still high, so if the expected two cuts come to fruition it could be the boost that many buyers-in-waiting need. 2025 could see the return of the previously priced out buyer.”
