Capital appreciation roars ahead - even before stamp duty surge

Asking prices of homes coming to the market continue to rise, even before the expected surge in demand following the government’s stamp duty announcement.

Rightmove says the average price of property coming to market rose 0.7 per cent in the past month to £367,760. This is in line with the average September rise of 0.6 per cent over the last 10 years, as the market continues to return to a more familiar seasonal pattern. 

Price growth this month is driven predominantly by the middle and high-end market sectors, with the “second stepper” category (three bedrooms and non-detached with four bedrooms) reaching a new record average asking price of £340,513. 

Buyer demand in these sectors is up by two per cent even compared to the frenetic market of last year, while more choice is now also available compared with 2021. 

Though the wider economic outlook remains uncertain, Rightmove says this month’s numbers suggest that for those who can, moving up the ladder to a home with more space remains a priority, even at a time when personal finances are stretched.

Tim Bannister, Rightmove’s Director of Property Science, comments: “The end of the summer break and the start of the new school term is usually a time when we see renewed focus from buyers, as those with plans to move see an autumn window of opportunity ahead of them. 

“Price growth this month in the middle and high-end sectors highlights that even when finances are more stretched, many of the reasons for looking to move up the ladder remain. This might be a growing family, or needing more space for other reasons, and the numbers suggest that those who can afford to are still prioritising moving. 

“Prices are likely to remain strong while demand continues to outweigh supply. 

“However, it is as important as ever to price competitively, especially in the sectors where there is now more choice, as there is a fine line between a realistically priced home and a home that feels overpriced when many buyers are making every pound count.”