Static house prices and lower mortgage rates are benefitting buyers across the south of England buyers most, Rightmove analysis shows.
In London, where average asking prices are now 1.1% lower than at this time last year, someone purchasing a home at the average asking price could save £181 on a monthly mortgage. In the South East it’s £120 per month, and in the South West it’s £106 per month.
Contrastingly, in Scotland where the average asking price for a home has risen by 2.3% compared with last year, a typical buyer is only saving £23 on monthly mortgage costs versus last year, as house price increases keep closer pace with mortgage rate drops.
Colleen Babcock, Rightmove’s property expert, said: “Competition amongst sellers to find a buyer is more heated in London and the south of England, while higher stamp duty rates have hit these regions harder, both contributing to lower asking prices compared to last year.
“The result for buyers is improved affordability when combined with lower mortgage rates, and the higher rate of agreed sales compared to last year suggests many are taking advantage.
“However, it’s still much more expensive to purchase a home in London and the south of England compared to other areas of Great Britain, so affordability is still stretched despite the increase in purchasing power.”
Over the last year, the average two-year fixed mortgage rate has lowered from 4.99%, to 4.53% now.
Matt Smith, Rightmove’s mortgage expert says: “We’re widely expecting a hold in the Bank Rate today. It will be particularly interesting to see how the Bank votes and its wider commentary around today’s decision to get a sense of how the next couple of months could play out.
“Although mortgage rates have trickled up in recent weeks as mortgage financing has become more expensive, we’re still seeing appetite from lenders to do business in what is typically a busy period for them.”
Regional mortgage payments
| Region | Average asking price | Average asking price change year-on-year | Average mortgage payment | Average mortgage payment change year-on-year |
| East Midlands | £291,578 | 0.9% | £1,240 | -£54 |
| East of England | £418,837 | 0.2% | £1,794 | -£90 |
| London | £675,074 | -1.1% | £2,927 | -£181 |
| North East | £194,737 | 0.5% | £831 | -£39 |
| North West | £270,275 | 3.2% | £1,123 | -£24 |
| Scotland | £199,146 | 2.6% | £833 | -£23 |
| South East | £479,982 | -0.7% | £2,073 | -£120 |
| South West | £382,531 | -1.3% | £1,662 | -£106 |
| Wales | £267,528 | 0.9% | £1,138 | -£49 |
| West Midlands | £293,645 | -0.1% | £1,260 | -£66 |
| Yorkshire and The Humber | £258,568 | 2.0% | £1,052 | -£36 |