The average asking price of newly marketed properties increased by 0.4% in August to £366,281, new data published by Rightmove has shown.

The property expert suggested August had been “a month of subdued housing market activity”.

Prices have risen at this time of year in all but three of Rightmove’s September reports since it began reporting back in 2001, and the latest figure is smaller than the average of 0.6% recorded in the same period over the past 10 years.

Rightmove suggested that while some sellers are being too optimistic on their pricing, it does appear that others are listening to their agents’ advice to price correctly from the outset. As a result, the annual rate of change has continued its downwards trajectory, which means that prices are still on track to meet Rightmove’s prediction of a 2% fall over the year as a whole.

“It’s been a slower than usual August, so all eyes will be on market activity over the next few weeks, which will set the trend for the rest of the year,” said Rightmove director of property science, Tim Bannister.

“The combination of 14 consecutive Bank of England interest rate rises and many buyers and sellers still catching up on lost pandemic holidays has contributed to a bigger than expected summer lull, though we still anticipate an autumn bounce. Market conditions still vary considerably in different locations, and so a local estate agent will be best placed to advise sellers to give them the best chance of finding a buyer this autumn.”

Rightmove also suggested that mortgage rates continuing their downward decline could help first-time buyers, as although the environment is still tough for many, the group has now seen seven consecutive weeks of falling mortgage rates.

Average five-year fixed rates across all loan-to-value (LTV) ratios are now 5.67%, down from 6.11% at their peak back in July. With house prices and mortgage rates falling, and average earnings increasing, Rightmove said the industry is continuing to take “small steps” towards improved buyer affordability.

“As we enter a key selling season, more people who have been thinking about what they need from a home and where they want to be living next year and beyond are taking action and coming to market,” added Bannister.

“This has helped to improve buyer choice, especially for those looking for larger homes, which also means that new sellers in the middle and upper sectors need to be extra careful not to set their price expectations too high. Plenty of sales are being agreed for properties that are priced at the right level, and those that are selling are still taking five days less than at this time in 2019. We’re also seeing the number of fall-throughs decline as market conditions and mortgage rates stabilise.”

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