Property asking prices fall at sharpest pace in 2 years

UK property price

The cost of new homes listed for sale fell 1.3 per cent in August, reducing the annual pace of growth to 8.2 per cent from 9.3 per cent, Rightmove said

UK property asking prices fell at the sharpest pace in almost 2-1/2 years as a traditional summer lull combined with increased caution about the outlook for the economy.

The cost of new homes listed for sale fell 1.3 per cent in August, reducing the annual pace of growth to 8.2 per cent from 9.3 per cent, the property-search website Rightmove said on Monday. The most expensive homes suffered the largest drop, and London had the biggest decline in the country.

uk property

Rightmove said prices typically fall in August when buyers go on holiday and focus on getting children back into school. Other reports from the Bank of England and mortgage lenders indicate that higher interest rates and concern about a cost-of-living crisis are starting to weigh on the property market.

Several indicators point to activity in the market continuing to cool from the lofty heights of the last 2 years, said Tim Bannister, director of property data at Rightmove. It’s likely that the impact of interest rate rises will gradually filter through during the rest of the year.

For now, a shortage of properties coming to market along with strong demand, are likely to keep prices from plunging. Rightmove noted a 20 per cent increase in buyer demand since 2019 before the pandemic started.

The figures underscore a steady surge in the cost of the property over the past 2 decades Rightmove has been conducting its survey, leaving many buyers straining to afford to buy.

Rightmove said housing costs have more than doubled in the past 20 years, rising 134 per cent to £365,173. That outstripped a 76 per cent increase in average wages over that period and a 93 per cent gain in the Retail Prices Index, a measure of inflation.

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