The latest house price index figures shows that this is much lower than the average seasonal 1.3% monthly increase at this time of year.

Market activity remains strong, but Rightmove notes that the muted Autumn price increase comes as buyer choice and seller competition rise.

The number of sales being agreed is up by 29% year-on-year while the number of people contacting agents about homes for sale up by 17% compared with this time last year.

The number of available homes for sale is 12% higher than a year ago, and represents the highest per estate agent since 2014.

Data shows that the outlook remains positive for 2025, but affordability pressures remain, and some buyers may be waiting for Budget clarity and cheaper mortgage rates before acting.

The average five-year fixed mortgage rate is now 4.61%, up from 4.55% last week, the first weekly increase since May.

Meanwhile, the average annual energy bill for a home with an energy performance certificate (EPC) rating of D is £2,465, up by 10% since September.

After inflation dropped to an unexpected 1.7% last week, financial markets are still predicting two Bank Rate cuts before the end of the year. 

Combined with wage growth currently outpacing house price growth, which is also boosting affordability, Rightmove says this suggests an active 2025.

Rightmove director of property science Tim Bannister says: “This month’s subdued price growth comes as buyer choice soars to a level not seen since 2014. With the ball in the buyer’s court and the pick of a big crop to choose from, sellers need to be pricing competitively to find a buyer, particularly with affordability still very stretched.”

“Some sellers appear to be acting on this caution, contributing to limited price growth and better buyer affordability. This is helping to keep the number of sales being agreed consistently and strongly ahead of the quieter market of this time last year.”

“We’re not seeing activity slow down, but some estate agents report that some movers are now waiting for Budget clarity and anticipated cheaper mortgage rates later this year. However, others state that movers are largely just getting on with plans.”

finova chief revenue officer Chris Little states: “Today’s data is another positive sign that the market is recovering, albeit slowly. With sub-5% mortgage rates becoming more popular, and potential interest rate cuts on the horizon, homebuyer confidence is rising, and we’ll likely see modest price growth through year-end.”

“Sellers may also be rushing to list properties before the Autumn Budget, in an effort to avoid the brunt of potential tax hikes, buoying activity in the coming months. That being said, affordability remains a challenge for many, and our hope is that the ongoing rate war should offer more attractive deals that can go some way to ease these concerns.”

“Both lenders and brokers must stay ahead of the curve to meet borrowers’ evolving financial needs, especially if we see a surge in buyer motivation before we close out the year.”

“Many financial institutions are already turning to technology to streamline services, and by investing in digital tools now, lenders can offer personalised, competitive rates all while managing their own risk. Real-time pricing gives lenders an edge, enabling them to provide tailored solutions that align with each borrower’s unique situation when they need it most.”