Rightmove October HPI sees a rebound from the fall in asking prices in September, along with soaring London asking prices.

Key Facts

  • The national average asking price rebounded by +2.8% in October 2013 following a small fall in prices in September. Rightmove see this as the onset of the autumn market
  • The overall increase over the year now stands at +13.8% and makes the national average asking price £252,418
  • London, which also saw low summer listings activities and price falls, bounced back as well with new seller numbers up 15% and asking prices up 10.2% – a massive increase of £50,484.
    • London average asking price is now £544,231
    • This represents a new record high – 5.6% above the previous Julys record.
    • Outer London prices are already more than double that of the rest of England and Wales

Regional Picture

The picture from a regional basis, outside of the potential London housing bubble, is positive although with some strong negative results.

The East Midlands leads the regional picture with a 4.1% increase over the month and 6.0% increase over the year.

Month wise for October Yorkshire & HumbersideEast Anglia and the South East following behind with 2.6%, 2.3% and 2.3% respectively.

At the other end of the spectrum, the West Midlands and Wales are at the bottom with a fall of -3.2% and -1.7% respectively.

Yearly West Midlands and Wale are still at the bottom of the negative falls in prices, but joined by the North West and North.

Miles Shipside, Rightmove director and housing market analyst comments:

“Fewer sellers coming to market in the capital during the traditional summer recess resulted in total price falls of 4.3% over August and September. However, this month’s rebound in the number of sellers brings the quarterly growth figure back into line with the recent trend at around 2% a month. Although not sustainable in the longer term, some
agents currently report there is a buying frenzy in parts of prime inner London, with available stock so low that their shelves are now bare. Unsurprisingly, many of this month’s best performers are boroughs in inner London”

“With the London market failing to provide the range of affordable properties its growing population needs, the South East is experiencing upwards price pressure as demand spills over. With an average price of just over £300,000, a commuter-belt property is in the cross hairs of Help to Buy assisted purchasers unable to afford the London market. Help to Buy will give some people a leg up onto the South East’s property ladder, but it also needs to spur more first-time movers to trade up to increase property supply and temper future price rises”.