The housing market showed early signs of an autumn recovery in September, with property prices rising month-on-month for the first time since May. According to data from Rightmove, the average price of a property listed for sale increased by 0.7 percent, or £2,441, reaching £367,440. Despite this increase, the average price remained 0.8 percent lower than in the same month last year and was down 2.3 percent compared to the start of the summer.

This monthly rise exceeded the 0.5 percent average increase seen in September over the past decade, suggesting a stronger than usual seasonal boost. September is typically a busier period as buyers and sellers return from summer holidays, contributing to heightened market activity. However, Rightmove highlighted that this recovery comes amid a challenging market environment, with the supply of homes on the market at a 12-year high for this time of year.

Demand remains subdued compared to the previous year, as prospective buyers continue to face affordability challenges. Although the Bank of England held interest rates steady at 3.75 percent last week, average fixed mortgage rates have kept rising due to increases in swap rates, which impact mortgage pricing.

Colleen Babcock of Rightmove noted that property prices have generally underperformed throughout the year, making the September rise a notable exception. She emphasized that sellers face intense competition, with many homes competing for a relatively smaller pool of buyers. In this context, she said that realistic pricing or superior property presentation are crucial to attracting interest and achieving sales.

Rightmove’s analysis showed that, on average, about 60 percent of homes listed for sale typically secure a buyer, although this varies significantly across the UK. Scotland, for instance, saw a much higher success rate, with nine out of ten properties finding buyers. The data also indicated that 74 percent of homes sold this year were priced appropriately from the outset, avoiding the need for subsequent price reductions.

Local estate agents echoed these observations. Kevin James, managing director of Bradleys Estate Agents in the southwest of England, reported stronger than expected activity during summer, particularly among sellers who adjusted their price expectations in light of affordability pressures. He noted that demand traditionally rises in autumn as families return from holidays and the new school year begins.

Marc von Grundherr, director of Benham and Reeves in London, stressed the importance of setting the right price from the beginning, particularly in a market where buyers have many options and little patience for overvalued properties. He acknowledged that this often requires difficult conversations with sellers but underscored that experienced agents should be prepared to address these issues upfront.

Overall, while the market shows tentative signs of recovery, analysts and agents agree that competitive pricing and high-quality property presentation remain essential in a still challenging housing environment.