Asking prices inch up in September
The property portal noted that the national annual rate of increase remains muted at 1.2%, but said there are some positive signs for the Autumn market in regions where affordability and sentiment are good.
But it warned that stretched buyer affordability or negative market sentiment in other regions are limiting price growth.
Miles Shipside, Rightmove director, said: “Buyer affordability has been increasingly stretched by seven years of national average property price rises outstripping buyers’ average wage inflation. However in London, after asking prices rose by over 50% between 2011 and their peak in 2016, there have been two years of subsequent price falls in parts of the capital. Now, there are signs that these price reductions in parts of London have led to an upturn in buyer activity as sentiment improves.”
Regions on the rise
Some regions have experienced average annual rises of at least 4%: the East Midlands (+4.7%), Wales (4.6%), West Midlands (+4.5%) and Yorkshire & the Humber (+4.0%).
At the other end of the scale, there have been year-on-year price falls in the North East (-1.1%), London overall (-0.5%) and the South East (-0.1%), with the East of England just reaching positive territory at +0.3%.
Shipside added: “Buyer affordability ratios were not stretched to the same degree in the Midlands and the North than they were in the South, with a comparatively modest average price increase of 21% since 2011. That’s left some price momentum fuel still in the tank in these regions, and means that the current momentum has the mileage to carry on into this Autumn.”