An average increase of more than £8,000 in property asking prices this month has revealed ‘evidence of some life in the market’, according to figures from Rightmove.
The 3.5% rise in property asking prices month-on-month is the highest leap in prices recorded in the past eight months, and brings the average price of a home across England and Wales to £243,168.
Across the UK the South East and the West Midlands (both at 3.9%) and North West (3.8%) recorded above average increases, while East Anglia saw the smallest increase (0.4%).
While the upturn in asking prices could be seen as a sign that the housing market is strengthening, the property website suggested it could also reveal that there are less properties for sale, providing limited choice for would-be buyers.
Miles Shipside, director of Rightmove, said the increase in asking prices “is most likely attributable to the continued shortage of new property supply.”
The jump in October means that prices are 1.5% higher than a year ago, and reverses the downward trend recorded between June and September, when prices plummeted by a staggering £11,000.
Mr Shipside went on to emphasise that while the figures appear to point to the fact that it is a seller’s market, homeowners may still face a number of stumbling blocks to securing a sale.
“Sellers need to be mindful that the window of opportunity to sell before the traditional winter slowdown is a narrow one, and they risk being left out in the cold for months until the spring market thaw,” he said.
“In addition, estate agents are reporting that mortgages are still no easier to obtain, with risk-averse lenders nit-picking every detail of the mortgage application paperwork, even from buyers who seem squeaky clean.”