The latest Asking Price Index from Home.co.uk for September reveals that a surge in new instructions has increased estate agents’ property portfolios, but demand has prevented a significant rise in unsold stock. Although more properties entered the market last month, the total stock has only grown slightly, suggesting that buyer demand remains robust.
Vendors are showing motivation to sell before the seasonal price dip typically seen towards the Christmas period. The recent cut in the bank rate has likely encouraged many to act, while a growing exodus of landlords is also contributing to the rising stock levels.
Despite the increase in stock, asking prices only dipped by 0.2% over the last month—the first such decline in nine months. This mirrors market conditions seen in 2019 when higher stock levels similarly put pressure on prices. However, unlike 2019, the market is currently moving faster, with properties selling more quickly despite rising stock.
The report highlights a regional disparity in the UK market. Northern regions, such as the North East, the West Midlands, Scotland, and Wales, are seeing significant price growth, with the North East leading with a 6.7% year-on-year increase. On the other hand, areas like the East of England and Greater London have yet to recover their 2022 price peaks.
In August 2024, the number of new property instructions was up 14% compared to the same period last year, pushing unsold stock to its highest level since November 2014. Yet, market turnover remains relatively strong, with properties selling faster than in previous years.
The annual growth of asking prices in England and Wales now sits at 1.5%, a marked improvement from the -1.8% recorded in September 2023. The report suggests that while some regions may see slow recovery, the UK property market remains healthy.
