You are here: Home - News -

House prices fall 2.3% as affordability barriers hit – Rightmove

by:
  • 20/08/2018
  • 0
House prices fall 2.3% as affordability barriers hit – Rightmove
House prices being offered dropped by 2.3% in August while homemovers who want to move in by Christmas should be active in the market now, according to Rightmove.

 

Estate agent Connells said it had re-launched 5,000 properties with substantial reductions since the start of the summer – selling 30% of them.

The Rightmove report noted that average asking prices of newly-marketed property has dropped in August by 2.3% against a 2.1% fall in the same month last year, as new sellers aim to achieve a quick sale.

London and the commuter-belt region of the South East were responsible for a large part of the fall in the national average. If those two regions are excluded the rest of the country has a monthly drop of 1.5%.

 

Muted new-sellar prices

New seller asking prices on a year-to-year basis are muted at 1.1% higher than a year ago, which helps buyer affordability.

Sales agreed numbers were broadly flat, down by 0.8% compared to this time last year, and as 2018 progresses they are improving compared to their position earlier in the year, the report added.

With 18 weeks until Christmas, people who are aiming to move in to a new property by the end of the year should make sure they now to have necessary finances in place, according to the figures released by Rightmove.

It found the average time from agreeing a sale to moving in was 13 weeks and new-to-the-market sellers need to add an average of eight weeks to find a buyer.

 

Warier buyers

Miles Shipside, Rightmove director and housing market analyst said that sellers who come to market in the peak holiday month often have a pressing need to sell and price down accordingly, and are offering ‘summer sale’ prices to entice holiday-distracted buyers.

He added: “The market started its most recent cyclical price upturn in 2010, and since then the average price of property coming to market has gone up by 32%, stretching buyer affordability. More substantial discounts are therefore required to tempt warier buyers, with higher house prices also tightening the purse strings of lenders.

“With lacklustre average wage growth, more buyers are bumping-up against the tighter lending criteria brought in four years ago following the Mortgage Market Review, which were intended to prevent another boom-and-bust cycle.”

Shipside also noted that sales numbers were rebounding and were now 3.5% down year-to-date.

“Overall in spite of political uncertainty, sales agreed are holding pretty steady and it is usual for there to be an upturn in prices and buyer activity as we head into the Autumn season, especially if sellers maintain their cheaper pricing to attract buyers,” he continued.

 

Agent’s view

Connells Group Estate Agency chief executive David Plumtree, said since the start of the summer it had re-launched almost 5,000 properties to the market, all with meaningful price reductions.

“So far, we have agreed sales on 30% of those properties which goes to show that, despite subdued market conditions and the gloom in the wider economy, there remains decent levels of demand for well-priced stock. The truth is there are still good levels of buyers looking to move home and the UK’s love of home ownership is as strong as ever.”

 

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
digital, artificial intelligence (AI), robot
Scale of skills challenge from AI to overshadow Victorian industrial revolution

The Bank of England’s chief economist has warned ‘large swathes’ of people will become technologically obsolete as artificial intelligence ‘hollows...

Close