The housing market stays vibrant, but the recent Rightmove House Price Index reveals a modest 0.3% month-on-month rise in asking prices to £371,958. The small increase highlights the growing choices for buyers and the intensifying competition among sellers.

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Rightmove's data pinpoints that with an ever increasing selection of available properties it gives buyers greater negotiating power, which is helping to keep price increases modest.

The property portal says this is caused by  those sellers following estate agents' advice to price homes competitively, thereby maintaining strong market activity despite the ongoing economic challenges.

A spokesperson for an agents’ association says: “Many serious buyers seem to be in the driving seat when it comes to negotiating on their next home move due to the vast choice of properties on the market,”

He also pointed out that competitive mortgage deals are enabling buyers to find affordable options and also expressed optimism that further interest rate cuts from the Bank of England would help bolster the market even more.

Tom Bill, head of residential research at one of UK's leading independent real estate agency, mentioned that despite mortgage rates having declined since the summer, both buyers and sellers are continuing to act cautiously in the market.

He said “The information vacuum ahead of the Budget has kept demand in check as the autumn market gets underway,” he said, adding that a favourable Budget could spur a surge in market activity.

Chris Rowson, managing director of an estate and lettings agency noted a significant uptick in both new buyers and  sellers during a busy September, he said: “The Bank Rate cut and lower mortgage rates definitely played their part in helping more people come to market,” and added that although there were small increases in mortgage rates buyers are not overly concerned.

Although the housing market remains active, price growth has been slower than anticipated and many attribute this to adjustments in the market following the pandemic.

Joel Baseley, of a London based estate agencies, commented, “We’ve seen one of the best years for transactions in our 18-year history, but price growth has been muted.”