Surprisingly resilient market despite economic pressures

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• The average price of property coming to the market rises by 0.7% (+£2,587) in the month to £367,760:

o    This month’s rise in new seller asking prices is in line with the ten-year September average increase of 0.6%

o    The middle and high-end market sectors are driving price rises this month, with a new record average asking price (£340,513) in the “second-stepper” category (three bedrooms and non-detached with four bedrooms)

• First-time buyers facing cost pressures, though new stamp duty cuts may provide some additional support:

o    The stamp duty cut from Friday’s mini-budget means that two-thirds of homes (66%) are now exempt from stamp duty for first-time buyers in England, and a third of all homes are exempt for all buyers (33%)

o    Average monthly mortgage payments for new first-time buyers are currently £1,057, which is 40% of an average gross salary for the first time since November 2012. They will jump to £1,114 per month if lenders pass on the latest interest rate rise of 0.5%

• The market remains surprisingly resilient despite growing economic pressures:

o    Buyer demand is up 20% on the pre-pandemic five-year average, and the stamp duty cut could stimulate some more demand over the next few months

o    The number of homes coming to market has risen back to 2019 levels, giving buyers more choice

The average price of property coming to market rises by 0.7% (+£2,587) this month to £367,760. This is in line with the average September rise of 0.6% over the last ten years. Price growth this month is driven predominantly by the middle and high-end market sectors, with the “second stepper” category (three bedrooms and non-detached with four bedrooms) reaching a new record average asking price of £340,513. Buyer demand in these sectors is up by 2% even compared to the frenetic market of last year, while more choice is now also available compared with 2021. These numbers suggest that for those who can, moving up the ladder to a home with more space remains a priority, even at a time when personal finances are stretched.