Buyer demand increased by 12% in September while sales agreed are also on the rise, Zoopla’s latest house price index reveals.

Demand has improved in all regions of the UK and enquiries to estate agents are up 12% since the August bank-holiday weekend, according to the monthly report.

Zoopla says this uptick in enquiries is partly seasonal but also reflects improved consumer confidence.

Demand is up 19% in the South East over the past three weeks and 16% in London.

The buyers’ market continues to strengthen, with 80% more homes available for sale in comparison to September 2021.

The average discount to asking price for a newly agreed sale now stands at 4.2% or £12,125.

According to Zoopla, this number is being skewed by London and the South East where discounts are greater at 4.8%. This figure stands at 2.8% for the rest of the UK.

Zoopla executive director at Richard Donnell says: “Better news on inflation and the end of base rate increases has provided scope for lenders to start reducing mortgage rates which has supported a modest uptick in demand for homes this September.

“Buyers continue to remain cautious and many are waiting for better value for money and improved affordability from lower house prices or further falls in mortgage rates before returning to the market.

“House price falls have been modest with the average house still 17% more expensive than before the start of the pandemic.

“Forbearance by lenders, tougher mortgage regulations over recent years and a strong labour market appear to have moderated the stress in the market compared to previous cycles that would have driven larger price reductions.

“House prices will continue to drift lower, especially in southern England, ending the year 2-3% lower meaning falling mortgage rates are required to boost activity and attract buyers back into the market.”