UK house prices jump by £3,575 in October as mortgage squeeze hits buyers
Rightmove reports a £3,575 rise in average asking prices for October, but the number of new buyers contacting agents is down 9 per cent year-on-year as higher mortgage rates stretch budgets.
Average asking prices for homes in Britain rose by £3,575 in October, according to property website Rightmove, even as higher mortgage rates continue to squeeze buyers' budgets. The monthly increase comes amid signs that affordability pressures are weighing on demand, with the number of new potential buyers contacting estate agents about properties down 9 per cent compared with a year earlier.
The figures highlight a market caught between rising asking prices and stretched household finances. Rightmove said the October uplift reflects typical seasonal momentum, but the decline in buyer enquiries suggests that mortgage costs are deterring some prospective purchasers. In London, the average asking price jumped by 2.5 per cent month-on-month to just under £674,000, outpacing the national increase.
Despite the headline price rise, analysts cautioned that the market faces a difficult autumn. Higher mortgage rates have eroded purchasing power, particularly for first-time buyers and those remortgaging. Rightmove noted that while asking prices have held up, the drop in new buyer enquiries points to a more cautious mood among households assessing whether they can afford to move.
The figures add to a mixed picture of the UK housing market, where limited supply of properties for sale has helped support prices even as demand cools. Estate agents report that well-presented homes in popular areas are still attracting interest, but buyers are increasingly price-sensitive and unwilling to overstretch themselves. The 9 per cent annual fall in new buyer enquiries is one of the clearest signals yet that the mortgage squeeze is filtering through to activity levels.
Rightmove's data is based on asking prices rather than completed sales, and typically captures the initial pricing decisions of sellers. The October increase may therefore reflect seller optimism rather than a broad-based strengthening of the market. With mortgage rates expected to remain elevated in the near term, the balance between supply and demand is likely to stay finely poised, and further monthly fluctuations in asking prices should be treated with caution.
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