You are here: Home - Mortgages - First Time Buyer - News -

Average asking price drops 1.2% in September

0
Written by: YourMoney.com
18/09/2017
The usual autumn price bounce has so far failed to materialise, with a fall in the average price of a property coming to market of 1.2% or £3,660, an index reveals.

The Rightmove House Price Index data from mid-August to mid-September showed this was the first fall at this time of year since 2013, taking the average national asking price to £310,000.

However, the national fall was exacerbated by a large 2.9% drop in London, with smaller falls in all other southern regions. The national monthly drop when removing London would be just 0.5%.

The London drop is being driven by its continued readjustment, particularly in the higher-end boroughs, with falls in five out of the six most expensive boroughs this month.

Miles Shipside, Rightmove director and housing market analyst, said: “As we enter the autumn selling season it is usual to see estate agents advising new-to-the-market sellers to push up their asking prices. But this year all four southern regions have seen new sellers on average asking less than those of a month ago, reducing the national rate of increase.

“There were autumn price bounces nationally in 2014, 2015 and 2016, but the south of the country has turned this month into a bit of a damp squib, while some northern regions are still showing marginal signs of upwards price pressure. Estate agents are clearly advising many sellers that they have to lower their price expectations to fit in with buyers’ stretched financial resources, with that price compromise hopefully generating extra buyer interest,” he added.

Holiday hangover

Brian Murphy, head of lending for the Mortgage Advice Bureau, said the data provides analysis on asking prices, rather than completed transactions, giving insight into market sentiment and behaviour.

“We can see that London is distorting the headline figure, as without taking into account the correction on asking prices in the capital, we can see that asking prices have actually declined by a marginal 0.5% month-on-month for the rest of the country, which in itself is likely to be the result of a holiday hangover with the market not yet having picked up post the summer hiatus.”

“As with last month, it’s very normal to see estate agents recommend to their clients that they price competitively over the holiday period, so the headline result of a slight month-on-month decrease, excluding London, is quite normal, with no cause for concern and is absolutely in line with seasonal expectations. We can also see that overall year-on-year asking prices are still seeing positive growth, albeit at a subdued pace.”

Russell Quirk, founder and CEO of eMoov, added: “We are heading into one of the busiest times of year for the UK property market and while traditionally many agents may have encouraged sellers to over price to get them on the books, the slower market over the last year has probably put a halt to this. I think many sellers are also realising this and listing their property at a more realistic price from the off, rather than see little interest and have to adjust further down the line.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2346942-gsk-hq-brentford-glaxosmithkline
BLOG: UK large cap pharma – risk vs reward

The pharmaceutical sector in the UK has long been dominated by two names – GlaxoSmithKline (GSK) and AstraZeneca (AZN). Given...

Close