Key facts
- Asking prices rose 1% in October, a smaller increase than the 1.3% average for the month.
- Asking prices were 0.1% lower year-on-year.
- New sellers in affordable areas are setting lower asking prices to counter affordability challenges.
- Sales agreed were down 8% compared to the previous year.
Asking prices for British homes increased by 1% in October, according to property website Rightmove. This rise was smaller than the typical 1.3% average for the month. The survey, which covers the period from September 13 to October 10, indicates that higher mortgage costs are beginning to impact affordability, even in areas with lower property prices. Asking prices were down 0.1% compared to a year earlier, following a 0.8% annual drop in September. The average two-year fixed mortgage interest rate increased to 5.55% from 5.29% in October. Buyers are showing uncertainty ahead of Finance Minister John Healey's budget, and some first-time buyers are awaiting further details on the First Home Scheme. Sales agreed were 8% lower than the previous year, and the number of homes available for sale is at its highest level for this time of year since 2014.