A new report from a property website shares that UK house prices have fallen by 1.3%, or £4,969, month-on-month in August to stand at a total of £368,740, following huge falls in June and July
The average price tag on a home has plummeted by over £10,000 throughout the summer, with a nearly £5,000 month-on-month drop in August alone, according to a property website.
Across Britain, the average price of a home coming to market decreased by 1.3%, or £4,969, month-on-month in August to stand at £368,740, according to Rightmove.
August’s price drop aligns with the average for this month observed over the past decade, following larger-than-usual declines in June and July, the report added. It comes after thousands of Brits to get shock letter from HMRC after drastic new tax rule comes into force.
The average new seller asking price for a home has now fallen by just over £10,000 (£10,777) this summer, the website revealed. In May, the average price tag on a home was £379,517, reports the Evening Standard.
Rightmove described a “two-speed market” with savvy summer sellers pricing realistically to attract buyers, while others are pricing properties too high.
Just over a third (34%) of properties for sale have reduced prices, and since 2012, the figure has only been higher at this time of year, in 2023, Rightmove stated.
The overall average time to find a buyer is now 62 days, however it takes an average of 32 days to find a buyer if a property does not need a price reduction, versus 99 days if it does, according to the website’s analysis.
It reported that the number of sales being agreed is 8% ahead of this time last year as serious buyers and sellers secure deals. The number of homes for sale is 10% up compared with this time last year.
Colleen Babcock, a property expert at Rightmove, stated: “Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers.
She added: “Astute buyers are now benefiting from new seller asking prices which average at an enticing £10,000 cheaper than three months ago. Buyers have the upper hand in this high-supply market, so a tempting price is vital to agree a sale.
“The strategy is working, with the number of sales agreed in the full month of July being the best at this time of year since 2020,” said Babcock, explaining that, “at that time, the market had recently reopened after the first pandemic lockdown, and generous stamp duty reductions had just been announced.
“However, the high number of price reductions we’re seeing is an indicator that some sellers are still coming to market with too high a price and then reducing it to become competitive.”
The recent base rate cut by the Bank of England is expected to provide another confidence boost for the market over the remaining months of the year, according to Rightmove.
Ms Babcock went further, saying: “Strong summer property sales as well as a stable level of new buyer demand bode well for the next couple of months. We usually see a busier autumn compared to the summer as the new school year starts and more focus returns to moving home”.
“Autumn sellers may also be hoping to be in a new home by Christmas, but they would need to beat the average time to find a buyer and complete a home sale”.
Rightmove’s Mortgages Expert, Matt Smith, said: “The markets are currently forecasting one more (Bank of England base rate) cut before the end of the year.
“Lenders have moved their rates downwards to remain competitive, but there doesn’t look like much room for too many further reductions if current market forecasts play out.
“We could potentially see some lenders squeeze their margin to gain a competitive advantage, but I don’t think this would play out across the market and would likely target specific segments of movers.”
Steve Beercock, Executive Director at Beercocks in Yorkshire and the Humber, observed: “Locally in Yorkshire and the Humber, we have seen particular strength in the mid to high-end market, with healthy levels of activity also coming from buy-to-let investors.”
Antony Roberts’s Head of Sales in London, Amy Reynolds, remarked: “What’s surprised me most is the first-time buyer flat market in our area.
“It slowed after the stamp duty holiday ended but has now rebounded strongly. That said, there are still some well-priced homes sitting unsold, often because buyers are holding back.”
She continued: “Some buyers may be waiting to see if the price drops, but we’ll soon be out of the traditionally quieter summer period and heading into the busier autumn.
“Those who hold back may see the property they like snapped up by someone else, so it’s always worth an inquiry to gauge the seller’s position.”
Mary-Lou Press from the National Association of Estate Agents Propertymark has observed a buoyant market despite broader economic concerns. She stated: “Despite recent changes regarding stamp duty, and the fact that there is still so much economic uncertainty, it is extremely positive to witness an uplift in sales being agreed alongside an increase in properties coming to the market.”
She also highlighted the link between the housing market and overall consumer confidence, noting the beneficial impact of recent base rate cuts: “The performance of the property sector is a strong indicator of consumer confidence, and it has been reassuring to see base rate cuts across the past few months that have helped to create greater levels of affordability.”