House prices are being cut by an average of 6.2%, or £22,700 – the largest such reduction since January 2011
A seasonal decline in market activity is typical, but not to this extent
The usual factors of summer holiday expenses always impact house prices around this time of year, but continual rises in interest rates (with another predicted this week) have impeded buyer confidence.
“The five-year pre-pandemic average for the proportion of properties that have had at least one price reduction is 31.2%,” said Tim Bannister, Rightmove’s director of property science, before later suggesting that some sellers were “too optimistic on their initial asking prices and have had to make some bigger than usual adjustments.”
The number of sales agreed across all property types in August fell to 18% down versus the same period in 2019.
The first-time buyer sector (two bedrooms or fewer) performed best in Rightmove’s analysis, with sales agreed only down by 13% versus 2019.
Mortgage rates are dripping as lenders predict that UK interest rates will soon reach their peak
The average five-year fixed mortgage is now at 5.67%, the seventh consecutive week of five-year fixed rates dropping, after peaking at 6.11% in July.
How this will play out for buyers remains to be seen; the number of available properties is down by 7% on 2019, but the first week of September saw a 12% increase in the number of new properties coming to market.
