London property asking prices see surprise autumn spike... as sellers in the north cut theirs

Asking prices fell slightly in the last month as mortgage rates begin to bite - but homes in London saw an unexpected rise, according to Rightmove. 

The listing price of homes new to the market in the capital rose by 2.5 per cent, the property portal said, as sellers hope to take advantage of buyers who want to be in a new home by Christmas.  

In Inner London, the most expensive part of the capital, prices went up by 3.9 per cent.

Meanwhile, sellers in more affordable parts of the country put their homes up for sale at cheaper prices. 

Asking prices in the North East falling by 2 per cent, Scotland by 1.9 per cent and the North West by 0.6 per cent.

Rightmove measured 104,164 asking prices on homes listed between September 12 and October 10. In the country as a whole, asking prices fell by 0.1 per cent in that period, and rose by 1 per cent compared to the same time last year. 

London's rises followed a weak summer where asking prices fell by 6 per cent across July and August.

New asking prices remain 1.7 per cent below where they were a year ago, which is a larger drop than any other region of the country.

Sellers who have flexibility on timing often deliberately come to market in the autumn, when there are typically more active buyers. 

Marc von Grundherr, director of Benham and Reeves estate agents in London, said: 'We're seeing something of an "enough is enough" mentality among London sellers, many of whom recognise that while the market has been subdued this year, London bricks and mortar remain one of the strongest assets they can hold.'

'For these homeowners, selling for anything less than what they consider a reasonable price simply isn't a sensible move, particularly if they have little urgency to sell.'

Mortgage rate rises deter buyers 

Payments on a new mortgage have increased by around £250 since February according to Rightmove's data, as lenders have put up rates on inflation concerns driven by the Iran conflict. 

It said this was putting buyers off in price-sensitive property markets which had until now proved more resilient. 

Colleen Babcock, property expert at Rightmove, said: 'The rapid rise in mortgage rates is really beginning to hit buyers' budgets.

'We're now seeing mortgage rate rises feed through to seller pricing in many of the cheaper parts of Great Britain, where prices had been more resilient this year.

'It's an early sign that higher mortgage costs are putting pressure on affordability even in markets with lower property prices, affecting the areas and types of property that buyers can afford.'

The market as a whole is quieter than usual, according to the property website. 

Rightmove's data shows that the number of sales being agreed is 8 per cent lower than a year ago.

Meanwhile, the number potential buyers contacting agents about properties is 9 per cent lower.

This is bad news for sellers, who are trying to find fewer buyers in a crowded sales market. 

The total number of homes available for sale remains at its highest level for this time of year since 2014.

While London home sellers are pricing their homes higher this month, Rightmove's indicators suggest some may be too optimistic. 

It found that 38 per cent of homes are having their price reduced and that it takes 78 days or 11 weeks on average to get an offer accepted.