The price of property coming to market this month has increased by 2.6% (+£6,784) continuing the usual October trend of a substantial uplift in new sellers’ price expectations. While this is the lowest rise at this time of year for six years, sellers may still find that their asking prices are too optimistic in parts of the country where the supply of property exceeds buyer demand.

Rightmove House Price Index

Overview

 

The price of property coming to market this month has increased by 2.6% (+£6,784) continuing the usual October trend of a substantial uplift in new sellers’ price expectations. While this is the lowest rise at this time of year for six years, sellers may still find that their asking prices are too optimistic in parts of the country where the supply of property exceeds buyer demand.

However, there appear to be few signs of a slowing market in the South East, which is now the strongest performing region in the country over the last 12 months. New seller asking prices in the South East are 10% up on a year ago, and higher than London’s current annual rate of 9.6%.

Key points

 

  • Price of property coming to market up by 2.6% (+£6,784) this month, though annual rate drops from 7.9% to 7.6% as pace of rises slows
  • South East (+10.0%) overtakes London (+9.6%) as highest annual riser
  • Buyers seeking better affordability and value ‘out of London town’
  • Upwards price pressure fuelled by shortage of home owners willing to sell
  • Largest ever data-driven analysis predicts South East will be fastest rising region in next five years, up 37%
  • Forecast cites Southampton, Luton and Brighton as the country’s best property bets
  • With time to sell and property supply both increasing is the traditional autumn price flurry sustainable? New seller numbers up 10% compared to October 2013 giving buyers more choice and negotiating power

 

Miles Shipside, Rightmove director and housing market analyst comments: 


“The ripple effect of buyers priced out of London combined with those cashing in and moving out of the capital means that the South East has taken London’s boom-town crown. Upwards price pressure is being further fuelled by a reluctance of home owners in the hotspots of the South East to come to market. Some can see the value in holding onto their fast-appreciating property asset, whilst others cannot find anything for sale locally on the market that tempts them to sell and move on. While the South East’s new seller numbers this month are up on last year’s, at just 3% increase this is the lowest pick-up in properties coming to market in any region in the face of the highest increase in demand.”

Analysis by Rightmove and Oxford Economics forecasts that the South East will be the region with the highest increase in property values in the next five years, driven by a continuation of this supply/demand imbalance in the medium term. While the national average is a 30% uplift, the South East is forecast to be up by 37%, ahead of London at 33%.

Shipside observes: 

“The South East has kick-started its journey on the five-year road to the highest growth in values by overtaking London in this month’s index. Those looking for the best price appreciation in the country should seriously consider the South East, and some may wish to fine-tune their search to the top three locations of Southampton, Brighton and Luton. This is not an opinion-based prediction but the most comprehensive data-driven forecast ever produced, and it shows gains of over 40% in those areas. They are either due a price over-spill from neighbouring areas, have good transport links with London, or both.”