Rightmove’s House Price Index showed that despite the monthly increase, asking prices were 0.1% lower than a year earlier.
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.
FTB asking prices decline
Among first-time buyer (FTB) properties, the average asking price increased by 0.2% on a monthly basis to £225,627, although prices remained 0.5% below October 2025 levels.
Second-stepper homes recorded a modest monthly rise of 0.1%, with the average asking price reaching £345,170. Unlike first-time buyer homes, annual growth for this segment stood at 0.3%.
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Properties at the top end of the market saw the strongest monthly growth, with average asking prices climbing 0.8% to £678,431. Prices were likewise 0.3% higher than a year ago.
Rightmove said that the number of new potential buyers contacting agents about properties is 9% lower than a year ago, whilst the number of new listings coming to market was 3% higher. Furthermore, its real-time data showed the number of sales was down 8% year-on-year.
Attention turns to the Budget
With Labour set to announce its first Budget under Andy Burnham, on 28 October, Rightmove said some buyers could be holding firm for further announcements on Your First Home, a sentiment also shared by housebuilders, Bellway.
Babcock, added: “The forthcoming Budget adds some uncertainty too, with financial markets hoping that will improve the outlook for interest rates, while potential homemovers will be waiting to see how they are directly or indirectly affected.”
Regional differentiation disguised
Rightmove’s index highlighted that the monthly increase should be understood within the wider context of mixed seller reactions.
As borrowing costs climb, sellers in several lower-priced regions have reduced asking prices.
Falls of 2% were recorded in the North East, with the average asking price at £195,977. A decline of 0.6% was reported in the North West and 0.3% in Wales, down to £273,222 and £267,735, respectively.
Yorkshire and the Humber was the only exception, recording a 0.3% increase to £260,019.
Tanya Elmaz, managing director of sales at Together, commented: “This ‘autumn bounce’ looks to be somewhat deflated as, in spite of the headline increase in prices, the reading remains subdued for a month which typically sees weightier price increases due to heightened activity. Elevated mortgage rates are primarily to blame for this, but uncertainty over the impact of the Autumn Budget will also be an impediment.”
