Average house prices increased by 0.9% in September to £309,122, new figures from Rightmove have revealed.
This is £1,349 short of the record set in June and the second consecutive monthly rise following the downturn after the Brexit vote.
House price growth has progressively slowed following April’s stamp duty hike after buyers brought forward transactions to beat the deadline.
The housing market has also been hit by uncertainty over the impact of the EU referendum, with many buyers adopting a more cautious approach and putting off purchases.
However, despite the overall rebound, different areas of the country are experiencing contrasting market conditions.
The North West, North East, Yorkshire & the Humber, East Midlands, West Midlands and Wales all saw an 11% fall in the total of houses available compared to last year.
This reduction in choice for buyers hampers their ability to negotiate and means sellers can ask for a higher price.
In contrast, the supply of housing in the south of England has risen by 16% compared to last year.
This increase means buyers have more choice and can therefore demand a better deal from sellers when purchasing a property.
Miles Shipside, Rightmove director and housing market analysis, said: ““This increase in the number of properties up for sale should not be misinterpreted as a glut of unsold property, but rather as an increase from the very low number of properties that agents have had on their books in the last few fast-selling years.
“While there is still underlying high demand in mass-market sectors, some find that affordability has become over-stretched while others judge that prices have risen beyond their true value. While many properties are still selling, in market sectors where there is now a lot more choice, buyers need enticing by an attractive price or by properties with special finish or appeal. If sellers fail to take this into account, then buyers will choose to buy elsewhere or bide their time.”
Jeremy Duncombe, director at Legal & General Mortgage Club, said: “September has clearly marked a return to the usual month-on-month increases in property prices that we saw earlier in the year. An ongoing lack of supply and continuing demand for housing means it’s business-as-usual for the property market, as house prices climb even higher.
“Although some may welcome the price of their property increasing, this trend will only make the prospect of homeownership more unattainable for those who are yet to make their first step on the housing ladder.
“Whether it is new properties for aspiring homeowners, or a housing boost for the rental sector, we need to see a concrete, sensible approach to housing policy from the Government that focuses on building hundreds of thousands of new homes across the country. It’s time to make a break with the past when it comes to housing policy and embark on a housebuilding revolution to improve the opportunities for people in all housing sectors.”
