Rightmove property searches see bigger than usual spike in first week of September... and London demand rises most

Property searches on Rightmove saw a bigger-than-usual spike in the first week of September according to figures from the property portal. The website said demand from buyers increased by five per cent in the first week of the month. In the past five years the average rise during the first week of September was a much smaller 0.4 per cent. It has been a tumultuous year for the property market as households remain under pressure from higher mortgage rates and geopolitical and economic turmoil. While buyer demand remained down on a year ago, the September spike means the gap is narrowing. Turbulence: Demand from would-be buyers picked up this month but it's been a torrid year for the housing marketHollie Whittaker, founder of Block & Brick estate agency, said: 'Viewing requests have started to pick up, and we're seeing more buyers actively continuing their search for their next home now the kids are back at school.'We're also seeing daily online views increase across our properties, which is a positive sign that buyers are re-engaging with the market.' London demand up the most Rightmove said it saw higher buyer demand across every region of Britain, with London and the south west of England recording a nine per cent and eight per cent increase respectively. The West Midlands and North East both recorded an increase of around seven per cent in buyer demand, while the East Midlands and south east of England each saw a six per cent uplift. In the east of England and north west of England, demand rose by five per cent and four per cent respectively. Across Wales and Scotland, demand from prospective buyers increased by three per cent and one per cent respectively. The property portal said: 'Rightmove's real-time data, generated from millions of interactions across the UK's largest property platform, regularly highlights how seasonal events and consumer behaviour influence home-moving activity.' Colleen Babcock, Rightmove’s property expert said: 'The start of September is often a busy time for the housing market as families return from summer breaks and refocus on their moving plans. 'This year we've seen buyer demand rise by 5 per cent during the first week of September, compared with an average increase of just 0.4 per cent over the same period during the last five years.'While buyer demand remains below last year's level, this year's back-to-school bounce is a welcome sign after a summer that brought the usual holiday distractions alongside several spells of exceptionally hot weather.'Many buyers and sellers remain cautious about the impact of the war in the Middle East on the cost of living and mortgage rates. Speculation about the impact of possible further tax hikes in the Budget in October is also rising. Mortgage rates rising piles pressure on buyersSome of Britain's largest and best-known mortgage lenders upped their borrowing rates in recent days. Barclays, Santander, Skipton, TSB and the Nottingham Building Society have all announced that they are raising interest rates on their fixed mortgages, many in the region of 0.15 percentage points.Coventry Building Society was first out of the blocks last week, announcing rate increases on its entire range of fixed-rate mortgages on Friday.Others including NatWest and HSBC put up rates earlier this month, and it is anticipated that rates could rise further in the coming days and weeks.Fears interest rates may need to increase, due to inflation triggered by a flare-up in the conflict between the US and Iran in the Middle East have been behind a bout of global bond-market turmoil.The yield on 30-year bonds, known as gilts, hit its highest level since 1998 in the middle of last week, hitting 5.94 per cent, while ten-year gilts reached 5.26 per cent, the highest level since the financial crisis in 2008.This increased expectations that the Bank of England will raise interest rates, which feeds through to investors demanding a higher yield to buy bonds.This has driven up mortgage rates because higher gilt yields increase the cost of borrowing for banks, and they pass this on to their customers.Nicholas Mendes, mortgage technical manager at John Charcol said: 'For borrowers, even a modest change in rate can still add to the monthly cost. On a £200,000 repayment mortgage over 25 years, a move from 5.50 per cent to 5.65 per cent would increase the monthly payment from around £1,228 to £1,246.'An extra £18 a month might not sound like a huge amount on its own, but it still adds up over the year, and any further repricing would push that cost higher again. That is why delaying unnecessarily can end up meaning borrowers pay more than they need to.'Best mortgage rates and how to find them Mortgage rates have shot up again due to inflation triggered by the conflict with Iran reversing hopes that the Bank of England would cut rates. This means those remortgaging or buying a home face higher costs.That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord.This is Money's partner L&C can help you with its fee-free mortgage service.> Compare mortgage rates> Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C.This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit.You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.If you’re ready to find your next mortgage, why not use This is Money and L&C’s online Mortgage Finder? It will search 1,000s of deals from more than 90 different lenders to discover the best deal for you.> Find your best mortgage deal with This is Money and L&C Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.