Estate agents are cautioning homeowners against overpricing their properties, as increasing mortgage rates are impacting buyers' budgets and intensifying competition among available homes. This advice follows Rightmove's latest House Price Index, which reported a 1% increase in average asking prices in October, reaching £371,015.
Despite this monthly rise, average prices remain 0.1% lower than last year. The average two-year fixed mortgage rate has now reached 5.55%. Data also shows a 9% year-on-year decrease in buyer enquiries and an 8% fall in sales agreed. The number of homes listed for sale in October is at its highest level since 2014.
Jeremy Leaf, a north London estate agent, noted that sellers who set competitive asking prices are more likely to find buyers in the current sensitive market. Michael Donnachie, Director at Michael Anthony Village Estates, emphasised the importance of getting the asking price right from the start, as overpricing can lead to a loss of momentum and buyer interest.