The common value of property coming to the marketplace for sale has risen by 0.4% (+£1,517) this month to £370,257. This is in line with the most recent Rightmove House Price Index.
Despite this month’s improve in prices, the primary since May, the common asking value for a house in the UK is now 0.1% (-£502) decrease than a 12 months in the past.
This first annual value drop since January 2024 is the fruits of a number of months of competitive pricing by new sellers over the summer season.
Average new seller asking prices are actually 0.1% beneath this time final 12 months following a number of months of muted value development
The dip in annual prices is pushed by London and the south, because the area underperforms the remainder of the UK.
Competitive pricing is markedly extra pronounced in the south. The variety of houses on the market in the realm is up 9% on 2024, in contrast with 2% throughout the UK, and it takes a mean of 5 days longer to safe a purchaser.
However, the variety of gross sales being agreed is 4% forward of this time final 12 months. In the south of England, it’s nonetheless up by 3% year-on-year, whereas it’s up by 5% throughout the remainder of the UK.
Rightmove’s information signifies no rapid response from movers to property tax rumours. However, nervousness round what could be revealed in the Autumn Budget threat slowing the elements of the market which are already underperforming.
Commenting on the most recent figures Rightmove property professional Colleen Babcock stated: “We’d anticipate to see a slight uptick in new seller asking prices in September, with the standard again to high school season boosting exercise heading into autumn.”
She added “It’s the wise and engaging seller pricing we’ve been reporting which has been serving to to drive extra gross sales exercise in comparison with final 12 months. Static home prices, rising wages, and decrease mortgage charges all help purchaser affordability, which has led to a rise in the variety of gross sales agreed in comparison with a 12 months in the past.”
MT Finance director Tomer Aboody commented: “The affordability matrix nonetheless reveals that first-time consumers are struggling to get on the ladder, with the common property value nonetheless larger than the common couple’s 4.5 occasions revenue a number of. Surely this has to vary in order that first-time consumers can afford to buy their first dwelling?”
He insisted that stamp responsibility reform wass urgently wanted to permit extra houses to return to the market, in order that downsizers had been inspired to promote and allow households to purchase. This would additionally release extra reasonably priced flats and smaller homes for first-time consumers.
He added: “The property cycle is a large focus of the financial system in the UK, and any authorities discouraging this, or not actively making an attempt to bolster this, will see the financial system falter.”
