Mortgage costs begin to weigh on UK housing market
Rightmove says asking prices rose in October, but affordability pressures are spreading beyond weaker regions.
Asking prices for British homes rose in October, but higher mortgage rates are beginning to weigh on affordability, according to Rightmove data reported by Reuters. Sellers in previously resilient parts of the market are cutting prices to attract buyers.
Rightmove's latest figures show that the average asking price for newly listed homes increased in October. The rise was accompanied by signs that buyers and sellers were becoming more cautious as mortgage costs increased.
Reuters reported that the average two-year fixed mortgage rate had risen to 5.55% from 5.29% in October. The comparable rate was 4.25% in February, before the start of the war in Iran, according to the report.
The pressure is no longer confined to parts of the market that have traditionally been weaker. Rightmove said sellers in more affordable and previously resilient areas were setting lower asking prices to offset affordability concerns.
Some first-time buyers were also waiting for more detail about the First Home Scheme. Buyers were uncertain ahead of the finance minister's Budget later in October, adding another reason to delay decisions.
Asking prices are not the same as completed sale prices, and they can change before a property is sold. The figures therefore provide an early signal of market sentiment rather than a complete measure of house-price movements or affordability.
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One story, several perspectives
What is established
- Mortgage rates reported by Reuters rose during October.
- Rightmove reported rising asking prices alongside greater affordability pressure.
- Some sellers were reducing asking prices.
- Some first-time buyers were waiting for Budget and scheme details.
Left
Arguments Housing should be treated as a social necessity, with stronger tenant protections, more affordable homes and public intervention to prevent high borrowing costs from excluding younger households.
Values Equality, housing security and intergenerational fairness.
Consequences More intervention could improve access but may reduce returns for landlords and increase public spending.
Centre
Arguments The priority should be stable mortgage markets, more housebuilding and targeted help for first-time buyers rather than broad subsidies that inflate prices.
Values Affordability, financial stability and evidence-led support.
Consequences Targeted measures may help those most affected but will not solve supply shortages quickly.
Right
Arguments The main problem is constrained supply and excessive planning friction. Lower taxes and faster development would allow the market to provide more homes and reduce pressure over time.
Values Property rights, market choice, growth and lower regulation.
Consequences Supply reform could improve affordability in the long run, but offers limited immediate help to borrowers facing higher rates.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Priya Shah — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The current figures and market interpretation are supported by Reuters' report of Rightmove data, with a second open report providing context on price reductions. The article avoids converting asking-price signals into claims about completed sales.
- confirmed The average two-year fixed mortgage rate reached 5.55% from 5.29% in October. — Reported by Reuters from Rightmove's figures. source
- confirmed The comparable rate was 4.25% in February. — Reported by Reuters. source
- confirmed Sellers in more affordable and previously resilient areas were setting lower asking prices. — Reported by Reuters from Rightmove's analysis. source
- confirmed Asking prices are not the same as completed sale prices. — This is a methodological distinction inherent in the measure and is consistent with the source's description of asking prices. source
Editor's note
The current October mortgage-rate and asking-price figures are attributed to Reuters' report of Rightmove data. Asking prices are explicitly distinguished from completed transactions; the report does not establish a nationwide fall in sale prices.Sources
More on this in other media
- The Guardian — „uk housing”
- BBC News — „uk housing”
- Sky News — „uk housing”