UK property asking prices rise for first time since May

British property sellers have increased the prices they want for their homes for the first time since May, according to real estate website Rightmove. Asking prices rose by 0.7% between August 9 and September 12, a slightly larger monthly increase than average for the time of year. This follows a 2.0% drop in the preceding four weeks.

Rightmove also reported that asking prices were 0.8% lower than a year earlier, a smaller annual decrease than the 1.0% drop recorded in August. The number of homes available for purchase reached a 12-year high, while buyer inquiries were down 9% compared to the same period last year.

Colleen Babcock, a property expert at Rightmove, described the September price rise as a "welcome sign of confidence after a particularly subdued summer," but cautioned that it should be viewed as a "modest recovery." The average two-year fixed mortgage interest rate increased to 5.29% from 5.09%, with little prospect of an immediate end to the conflict in Iran contributing to higher borrowing costs.