The autumn market has opened with a set of headlines that, read in isolation, could point sellers in very different directions. Asking prices are up, sold prices are down, buyers have more choice than at any point in over a decade, and the cost of borrowing may be about to rise again. Here is what the latest data tells us, and what it means if you are thinking of selling in Battersea this winter.
The price reality gap
Rightmove reported that the average asking price of newly listed homes rose 0.7% in September to £367,440, the first monthly increase since May. On the surface, that looks like a market finding its feet after a subdued summer.
But asking prices only tell us what sellers hope to achieve. Nationwide, whose index is based on the prices buyers are actually agreeing and borrowing against, showed prices slipping 0.2% over the same month, with annual growth halving from 1.6% to 0.8%. Rightmove’s own figures add to the picture: asking prices are still 0.8% below a year ago, and agreed sales are down 9% year on year.
The lesson is simple. A listing price is an opening position, not a valuation. The homes that are selling are the ones priced for the reality of the transaction, not the optimism of the portal.
Record choice for buyers
The number of homes available to buy has reached a 12-year high. For buyers, that means more viewings, more comparisons and less pressure to compromise. For sellers, it means competition.
Today’s buyers are well informed. They can see how long a property has been on the market, they track price reductions, and with so much choice they are actively passing over homes that look overpriced. A property that misses the mark in its first two to three weeks risks becoming stale stock, and the eventual reduction is usually larger than if it had launched correctly in the first place.
Flats are under particular pressure
Flats continue to underperform the wider market, with values down 2.27% year on year. Rising service charges, ground rent concerns and stricter lender criteria on certain leasehold buildings have all weighed on demand.
This is especially relevant in SW11, where a large share of the local market is leasehold apartments. Mortgage affordability tests are squeezing the budgets of many buyers, which makes cash buyers and well-positioned purchasers particularly valuable. Vendors of leasehold apartments should be pricing to attract that pool of buyers from day one. Having your lease details, service charge history and building information ready before launch also removes a common source of delay and renegotiation.
Regulation is on its way
At the Labour Party Conference, Deputy Prime Minister and Housing Secretary Angela Rayner set out plans as part of a wider leasehold reform package that would require property agents to be licensed and hold formal qualifications. The proposals are designed to strengthen protections for homebuyers, tenants and leaseholders, including against unexpected and opaque costs.
The detail and timetable are still to come, but the direction is clear: the industry is moving towards higher professional standards and greater transparency. We welcome that. For sellers and landlords, it is a good moment to ask what standards and protections your agent already works to.
Interest rates: the pressure is building
The Bank of England held the base rate at 3.75% in September, but the vote was split 6–3 and rising inflation, driven in part by higher energy prices, has put a rate rise firmly back on the table. Several forecasters now expect an increase to 4.0%, with the next decision due on 5 November, shortly after the Budget on 28 October.
Lenders have already moved ahead of the Bank. Rightmove reports the average two-year fixed mortgage rate rose from 5.09% to 5.29% in a single month. Whatever the Bank decides, buyer affordability is likely to remain stretched heading into winter.
What this means for sellers
None of this means now is a bad time to sell. Serious buyers are active, and well-presented, sensibly priced homes are still finding purchasers. But the margin for error has narrowed. Our advice for anyone considering a sale this autumn:
- Price for the buyer, not the portal. Base your asking price on recent agreed and completed sales, not on what neighbouring homes are listed at.
- Make your first weeks count. Launch with strong photography, clear information and a realistic price to capture the most motivated buyers early.
- Prepare your paperwork. Particularly for leasehold flats, having lease and building information ready reduces delays and the risk of renegotiation.
- Think about timing. With rate decisions and the Budget ahead, buyers who are ready to proceed now are worth securing.
If you are weighing up a move and would like an honest view of what your home would achieve in today’s market, the Radstock team would be happy to talk it through.
