The latest index shows that: –
- Price of property coming to the market sees first fall this year, down 1.3% in the month to £365,173 (-£4,795).
Prices usually drop in August, and this 1.3% is in line with the August drop over the past ten years
- Summer holidays are taking priority and some new sellers are pricing more competitively to secure a buyer quickly. This is also to beat the lengthy average time to completion and move home before Christmas
Demand continues to soften and supply constraints are improving, but there is still a massive imbalance.
- Buyer enquiries to agents are down 4% on the hot market of 2021, but remain 20% higher than 2019
- New listings are up by 12% on the same period last year, but are still 6% down on 2019, while available stock is down 39% on 2019
Latest interest rate rise of 0.5% is putting further pressure on buyer affordability:
- Average monthly mortgage payments for new first-time buyers putting down a 10% deposit exceed £1,000 for the first time
- August marks 20 years of Rightmove’s House Price Index, with national average asking prices more than doubling in those 20 years (+134%). This is from £155,994 to £365,173, outstripping both salaries and general inflation. (see Flat Livings articles on the cost of living by clicking the link)
“The first signs of a cooling market may seem a cause for concern, but the reality is that the herd of homebuyers to have stampeded through the UK property market since the start of the pandemic are simply pausing for breath.
While market conditions have been far from predictable in recent months, we’re now seeing a return to the regular seasonal trends and patterns that appear each and every year, with the peak summer months always a traditionally quieter time. Once the chaos of the school summer holidays has come and gone, market momentum will return in the run up to the Christmas period”. – Managing Director of Barrows and Forrester, James Forrester, commented
“The increasing cost of both buying and borrowing has started to dampen the insatiable appetite of the nation’s buyers ever so slightly. When coupled with the fact that the drought of new homes entering the market is now starting to ease, a marginal reduction in asking prices was always going to materialise.
London continues to present a mixed picture. While the capital’s property market has largely struggled to regain any meaningful level of momentum, it’s important to note that the performance of individual boroughs is as diverse as the wider regional outlook.
While some boroughs, such as Barnet, have seen notable monthly declines, other more peripheral boroughs are enjoying strong and sustained rates of monthly and annual price growth.”
Director of Benham and Reeves, Marc von Grundherr, commented
“Although it may seem a long way off, Christmas is really just around the corner for those hoping to be carving their Christmas turkey in a new home. With buyers no longer acting with the same desperation to secure a home, those looking for a quick sale are having to price more realistically in order to entice them into a purchase.” – Co-founder and CEO of GetAgent.co.uk, Colby Short, commented
“The first signs of a cooling market where seller expectation is concerned provides further evidence that the market is now starting to turn. While we’re a world away from a property market crash, those looking to sell are best advised to price appropriately based on their local market conditions. Failing to do so will see their home sat for sale with little to no interest for months on end. Those looking to sell their home quickly must accept and adapt to the fact that it’s no longer the sellers market it was just a few months ago.”
Managing Director of HBB Solutions, Chris Hodgkinson, commented
