The average price of a home lifted by 0.7% in September to £367,760, according to Rightmove, as the market “remains surprisingly resilient despite growing economic pressures”.

The rise in asking prices is in line with the ten-year September average increase of 0.6% points out the property website’s monthly House Price Index, and amounts to an annual average rise of 8.7%.

It adds that middle and high-end homes drove prices this month, setting a new record average asking price of £340,513 among three-bedroom and non-detached with four-bedroom properties.

The report comes after Chancellor Kwasi Kwarteng permanently doubled stamp duty thresholds from £125,000 to £250,000 in his mini-Budget on Friday.

He also lifted the threshold that first-time buyers begin to pay this tax to £425,000 from £300,000. And increased the value of the property on which FTBs can claim relief to £625,000 from £500,000.

The report says that two-thirds of homes are now exempt from stamp duty for FTBs in England. It adds that a third of all homes are exempt for all buyers, compared with 7% before the tax cut. 

It points out that average monthly mortgage payments for new FTBs are currently £1,057, which is 40% of an average gross salary for the first time since November 2012. But adds this will jump to £1,114 per month if lenders pass on the latest base rate hike.

The report also follows the Bank of England raising the base rate by 50 basis points to 2.25% last week, the highest rate for 14 years and the seventh hike since December.

The move aims to help counter rising inflation, driven by food and energy costs, which the Bank now predicts will hit 13% before the end of the year.

The Office for National Statistics’ latest data shows that inflation dipped from 10.1% in July to 9.9% in August.

However, the property website says the housing market “remains surprisingly resilient despite growing economic pressures”.

 It points out that buyer demand is up 20% on the pre-pandemic five-year average, and the stamp duty cut could stimulate more demand over the coming months.

The report adds the number of homes coming to market this month lifted by 16% compared to a year ago, a return to 2019 levels.   

Rightmove director of property science Tim Bannister says: “The end of the summer break and the start of the new school term is usually a time when we see renewed focus from buyers, as those with plans to move see an autumn window of opportunity ahead of them. 

“Price growth this month in the middle and high-end sectors highlights that even when finances are more stretched, many of the reasons for looking to move up the ladder remain. 

“This might be a growing family, or needing more space for other reasons, and the numbers suggest that those who can afford to are still prioritising moving. Prices are likely to remain strong while demand continues to outweigh supply.”