Home sellers are reducing asking prices at the fastest rate in 15 years, driven by increasing mortgage costs and heightened competition among vendors. Rightmove figures indicate that over 3,000 properties had their asking prices cut daily during September.
The average reduction was almost 7%, which equates to approximately £21,000 on a typically priced home. Currently, 34% of listed properties have undergone a price reduction, nearing the 36% peak recorded in September 2023.
This trend coincides with a decline in buyer enquiries and sales agreed, while the number of homes for sale has reached a 12-year seasonal high. Properties requiring a price reduction took an average of 119 days to find a buyer, compared to 39 days for those marketed without a reduction.
Rightmove's latest House Price Index shows the average two-year fixed mortgage rate increased to 5.55% in October, up from 5.29% last month. This rise has added around £250 a month to the cost of a typical new mortgage.
Despite regional falls, with the North East seeing a 2% monthly drop, average asking prices across Britain rose 1% in October to £371,015. However, these prices remain 0.1% below October last year.