Asking prices rise 1% as buyer numbers fall

Sellers raised their asking prices by 1% in October, but fewer buyers are coming forward and mortgage rates remain close to 6%. Here is what this week’s data says, and what it could mean for Surrey and south-west London.

Figures correct as of 20 October 2026.

The main new data this week came from Rightmove, which published its October asking price report on 19 October. It points in two directions at once: sellers are asking for a little more, while the number of people looking to buy is lower than a year ago. Both can be true, and it is a reminder that asking prices show what sellers hope to achieve, not what homes eventually sell for.

The numbers this week

Rightmove reports that the average asking price of newly listed homes in Great Britain was £371,015 in October, up 1.0% (£3,575) on September but 0.1% lower than a year earlier. Activity is softer than prices suggest. Sales agreed were 8% below the same time last year, the number of new potential buyers was 9% lower, and new listings were 3% higher. The total number of homes for sale is at its highest for this time of year since 2014, according to Rightmove.

More choice and fewer buyers tends to give those who are buying a little more negotiating room, and it asks sellers to be realistic about price from the start.

Mortgages and interest rates

Rightmove’s own survey put the average two-year fixed mortgage rate at 5.55% in October, compared with 5.29% in September. Moneyfacts, which measures a wider set of products, had the average two-year fixed rate at 5.96% on 15 October, against 5.73% a month earlier, with its overall average new mortgage rate unchanged at 5.88% since 8 October (as reported by The Intermediary). The two sources use different methods, which is why their figures differ, but both show rates higher than in September.

The Bank of England held Bank Rate at 3.75% at its 17 September meeting. Its next decision is due on 5 November, a week after the Budget. We have not seen new inflation or Bank Rate data this week, so there is nothing further to report on that front until those announcements arrive.

Politics and policy

The Budget is on 28 October, and Rightmove says the uncertainty around it is one factor on buyers’ minds. Reuters reported on 7 October that the Chancellor is considering extending the so-called mansion tax from homes worth over £2 million to those worth over £1.5 million, a report that Reuters attributed to the Times. This is reporting about options, not a decision. Nothing about the Budget is confirmed until the Chancellor stands up on the day, and anyone with a property-related decision to make should wait for the actual announcements and check them with a qualified adviser.

What this means for Surrey and south-west London

Rightmove’s regional figures show a more cautious picture in our part of the country. In the South East the average asking price was £475,582 in October, up 0.9% on the month but 0.9% lower than a year ago, and homes took an average of 74 days to find a buyer. In London the average asking price was £673,942, up 2.5% on the month but 1.7% lower than a year ago, with an average of 78 days to find a buyer and 38% of listings having had a price reduction. Rightmove describes the London monthly rise as partly seasonal and partly a rebound from a weak summer, rather than a wider recovery.

Zoopla’s September index, published on 1 October, told a similar story, with prices in the South East 0.7% lower and London 1.0% lower than a year earlier. These are averages across very different areas, so conditions on a particular road or in a particular village can look quite different.

For buyers, longer selling times and more homes on the market mean you can take time to compare, though higher mortgage costs mean it is worth checking your borrowing position early. For sellers, the homes that attract interest tend to be priced in line with recent sales from the outset, because reductions are common where the first price was optimistic. For landlords and investors, it is worth watching what the Budget actually says before drawing conclusions.

At PIM & PARTNERS we follow these figures each week so that you do not have to. If you are thinking about a move in Surrey or south-west London and would like to talk it through, get in touch at pim@pim-partners.co.uk.

Sources

• Rightmove, House Price Index for October 2026 (published 19 October 2026)
• The Intermediary, reporting Moneyfacts mortgage rate averages for 15 October 2026 (16 October 2026)
• Bank of England, Bank Rate and latest decision (17 September 2026)
• Zoopla, House Price Index for September 2026 (1 October 2026)
• Reuters via Yahoo Finance UK, options for the 28 October Budget (7 October 2026)

This article is general information, not financial or mortgage advice. Property values can go down as well as up. Please speak to a qualified mortgage adviser before making borrowing decisions.