The average price of property coming to the UK market climbed by 0.7% in September, the latest Rightmove House Price Index has revealed.

This increase, worth £2,587, has taken the average price of a home entering the market to £367,760. Rightmove stated that the rise is also in line with the average September rise of 0.6% over the last 10 years.

According to the latest index, price growth this month was driven by the middle and high-end market sectors, with the 'second stepper’ category – those with three bedrooms and non-detached with four bedrooms – reaching a new record average asking price of £340,513.

The data also showed that buyer demand in these sectors is up by 2% even compared to the market of last year, while more choice is now also available compared with 2021. Rightmove said that these numbers suggest moving up the ladder to a home with more space remains a priority for those who can afford it, even at a time when personal finances are stretched.

“The end of the summer break and the start of the new school term is usually a time when we see renewed focus from buyers, as those with plans to move see an autumn window of opportunity ahead of them,” commented director of property science at Rightmove, Tim Bannister.

“Price growth this month in the middle and high-end sectors highlights that even when finances are more stretched, many of the reasons for looking to move up the ladder remain.

“This might be a growing family, or needing more space for other reasons, and the numbers suggest that those who can afford to are still prioritising moving. Prices are likely to remain strong while demand continues to outweigh supply.

“However, it is as important as ever to price competitively, especially in the sectors where there is now more choice, as there is a fine line between a realistically priced home and a home that feels overpriced when many buyers are making every pound count.”

Rightmove’s index also highlighted cost pressures facing first-time buyers, with the average monthly mortgage payment for new first-time buyers putting down a 10% deposit now reaching £1,057, a figure 40% of an average gross salary for the first time since November 2012.

Following the Bank of England’s latest interest rate rise of 0.5%, with the base rate now at 2.25%, this number could jump to as high as £1,114 per month if lenders pass on the rise to new first-time buyers. It means a 10% deposit on a first-time buyer type home is now 57% higher than 10 years ago, while average salaries have increased by 32% over the same time – making it increasingly more difficult to save the necessary deposit.

Bannister added: “The rising cost of living is increasingly playing a role in some buyers’ considerations, as they look at their budgets and what they can afford. Demand has been softening over the last few months, but Friday’s announcement is likely to stimulate some more demand. If it does lead to a big jump in prospective buyers competing for the constrained number of properties for sale, then it could lead to some unseasonal price rises over the next few months.

“The first-time buyer threshold change means we could see more first-time buyers who can afford it making a jump to a bigger home as their first move. With more buyer demand we would also expect that the current trend of more properties coming to market will continue, offering more choice for buyers.”

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