The UK housing market has recorded its first monthly increase in asking prices since May, providing a potentially encouraging start to the autumn selling season.

Rightmove reported that the average asking price of newly listed properties increased by 0.7% between 9 August and 12 September, reaching approximately £367,440.

The increase was slightly stronger than the typical September rise of 0.5% recorded over the previous decade. However, asking prices remained 0.8% below their level a year earlier and 2.3% below the beginning of the summer.

A modest improvement rather than a major turnaround

The latest figures provide an interesting contrast with the subdued conditions seen during the summer.

The increase suggests that some sellers have become more confident about putting their properties on the market at higher asking prices.

However, the distinction between asking prices and completed sale prices remains important.

Rightmove's data measures the prices at which properties are initially marketed. It does not necessarily show the final price achieved when a transaction completes.

That means the September increase should be viewed as an early indicator of market sentiment rather than proof that UK property values have entered a sustained upward cycle.

Buyers remain price-sensitive

The market is still operating under significant affordability constraints.

Mortgage rates have increased during September, while the Bank of England has maintained Bank Rate at 3.75%.

That combination means buyers continue to pay close attention to monthly mortgage costs.

A seller who increases an asking price may therefore find that potential buyers respond by negotiating more aggressively.

The official data tells a slower story

The latest ONS figures, released on 16 September, showed average UK house prices at approximately £273,000 in July, representing annual growth of 1.4%.

The ONS also reported that annual house-price growth had slowed for a third consecutive month.

The difference between the ONS and Rightmove data is largely a matter of timing and methodology.

Rightmove captures newly advertised properties, whereas the official House Price Index is based on completed transactions and has a longer time lag.

What should buyers and sellers watch?

The next few months will reveal whether the September improvement develops into a broader recovery.

Key indicators include:

• Mortgage rates

• Mortgage approvals

• Agreed sales

• New listings

• Time spent on the market

• Final transaction prices

• Consumer confidence

For sellers, the latest figures could provide some encouragement.

For buyers, however, the message remains one of caution. A small rise in asking prices does not necessarily mean that negotiating power has disappeared.

The autumn test

The UK's autumn property season will provide a useful test of whether the summer slowdown is beginning to ease.

For now, the evidence points towards some improvement in market confidence, but not yet a decisive change in the direction of the housing market.