Asking prices for newly advertised properties typically go up at this time of year, but this month’s increase is well below the historic October norm of 1.4%.

New seller asking prices in October 2023 have increased by an average of just 0.5% to £368,231, according to a new report from Rightmove. It’s the smallest rise at this time of year since the height of the financial crisis in 2008.

Buyer activity levels remain significantly lower than during the post-pandemic market frenzy, the property website said. The number of sales being agreed currently stands 17% below this time last year — but there are still buyers out there for the right property at the right price.

Agents advise that sellers need to capture attention with a competitive price from the first day of marketing. Properties with a realistic asking price succeed in finding a buyer in less than half the time that it takes those that need a reduction, and when they do find a buyer the sale is also 50% less likely to fall through, Rightmove found.

“In a market that agents describe as the most price-sensitive ever, buyers are likely to be on the look-out for homes that they feel represent excellent value, and to attract one of these motivated buyers, sellers need to price right first time,” said Tim Bannister, director of Property Science at Rightmove. “If similar nearby properties for sale appear overpriced, serious sellers have an opportunity to stand out from the crowd with a more competitive price and attract immediate buyer interest that our research shows significantly increases the likelihood of finding a buyer.”

House prices are continuing to fall across the UK as high interest rates make it harder for buyers to afford a new mortgage.

The latest monthly report from Halifax shows that average house prices in August 2023 were 4.6% lower than in the same month a year ago, representing a decrease of £14,000 for the average home.

It’s the biggest annual fall in 14 years, although the mortgage lender noted that this is relative to the record high property prices seen last summer.

The average home now costs £279,569, down by around £5,000 since July, and back to the level seen at the start of last year. Prices are still £40,000 higher than before the pandemic.

“We may now be seeing a greater impact from higher mortgage costs flowing through to house prices,” said Kim Kinnaird, director of Halifax Mortgages.

“The market will continue to rebalance until it finds an equilibrium where buyers are comfortable with mortgage costs in a higher range than seen over the previous 15 years.”

Halifax expects further downward pressure on house prices through to the end of this year and into 2024.

UK house prices declined for the third consecutive month in June, according to the latest monthly report from the Halifax.

A typical property now costs £285,932. This is down by around £300 or 0.1% compared to May and a drop of £7,500 or 2.6% on an annual basis — the largest year-on-year decrease since June 2011.

“This rate of decline largely reflects the impact of historically high house prices last summer — annual growth peaked at 12.5% in June 2022 — supported by the temporary Stamp Duty cut,” explained Kim Kinnaird, Halifax’s director of mortgages.

Kinnaird noted that the volume of mortgage applications held up well throughout June, particularly from first-time buyers. However, the housing market remains sensitive to volatility in borrowing costs.

“Concerns about persistent inflation have led to a significant increase in the cost of funding,” Kinnaird added. “Coupled with base rate rising by another 50bp, this contributed to a big jump in typical mortgage rates over the last month.

“The resulting squeeze on affordability will inevitably act as a brake on demand, as buyers consider what they can realistically afford to offer.”

With the base rate now anticipated to peak at over 6%, mortgage rates are likely to remain higher for longer, and the squeeze on household finances will continue to put downward pressure on house prices over the coming year.

Average house prices across the UK increased by 0.8% in March, following rise of 1.2% in February, according to the latest analysis by Halifax.

As a result, the typical property now costs £287,880. This is up from £285,660 in February but is still around 2% below the peak reached last August, the mortgage lender said.

House prices rose in all UK nations and regions in March, although the annual rate of growth continued to slow in most areas.

“On an annual basis, house prices were 1.6% higher than a year ago, slowing from 2.1% in February,” explained Kim Kinnaird, director of Halifax Mortgages. “This is the weakest rate of annual growth in nearly three-and-a-half years (October 2019), having fallen markedly since June 2022’s peak of 12.5%.

“However, overall these latest figures continue to suggest relative stability in the housing market at the start of 2023 and align with many other recent industry surveys and data. This has been characterised by a partial recovery in activity and transactions, especially when compared to the significant drops seen at the end of last year, with latest Bank of England data showing mortgage approvals rising for the first time in six months.”

The number one factor behind this improved picture is an easing of mortgage rates.

“The sudden spike in borrowing costs that we saw in November and December has now been largely reversed, and while rates remain much higher than the average of the last decade, across the industry a typical five-year fixed rate deal (75% LTV) is down by more than 100 basis points over the last few months,” Kinnaird said.

At the same time, the labour market, a key indicator for house prices, remains strong and pay growth continues to look robust.

However, Kinnaird warned that mortgage costs are unlikely to get significantly cheaper in the short term and the performance of the housing market will continue to reflect the “new norms” of higher borrowing costs and lower demand.

Consequently, Halifax still expects to see a continued slowdown over the course of this year.

The average house price in the UK fell by 1.5% in December, according to the latest monthly report from Halifax.

It’s the fourth consecutive monthly fall and means that the average house price across England, Scotland, Wales and Northern Ireland is now £281,272, down from £285,425 in November.

The rate of annual growth also declined to 2%, from 4.6% a month ago, with a slowdown seen in all nations and regions.

The market has been hit by rising mortgage rates and uncertainty over how increases in the cost of living will impact household bills.

Kim Kinnaird, director of Halifax Mortgages, said that buyers and sellers are likely to “remain cautious” in 2023, leading to a reduction in both supply and demand. House prices are forecast to fall by around 8% over the course of the year.

However, the cost of the average home remains high — greater than it was at the start of 2022 and over 11% more than house prices at the beginning of 2021.

“It’s important to recognise that a drop of 8% would mean the cost of the average property returning to April 2021 prices, which still remains significantly above pre-pandemic levels,” Kinnaird added.