Rightmove predicts house price slump
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House prices are expected to fall for the next three months as new sellers drop their asking prices by almost £4,000.
The latest house price index from Rightmove shows that average asking prices across the UK were down £,3744 during October, 1.6% down on September’s house price levels.
The website says that despite the low levels of properties on the market this has not been enough to buck the trend of house price falls in the run-up to Christmas.
Miles Shipside, commercial director of Rightmove, says: “Many would-be sellers are still unwilling or unable to come to market, and with the number of new-build properties running at half of the levels required to satisfy anticipated demand, aspiring home movers are set for a frustrating time for years to come.
Yet seven out of 10 regions reported that prices are actually up on an annual basis.
The South-East saw the largest increase in prices, with an average rise of 3.8% driven by the lowest average stock levels per estate agent.
The East Midlands was the worst performer with prices 1.6% below those of November 2008.
Rightmove has also found that the upcoming end to the Stamp Duty holiday is not causing a flood of sellers and buyers to come to the market.
Currently properties between £125,000 and £175,000 are exempt from paying the 1% levy, with the exemption coming to an end on December 31.
But Rightmove says this incentive that was meant to drive the housing market is “almost irrelevant” because of lenders’ high deposit requirements.
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Readers' comments (4)
William Reid | 16 Nov 2009 3:59 pm
Predictable maybe but would have preferred better news!
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Andy Godfrey | 16 Nov 2009 4:08 pm
comments like theses do nothing to help the market, they get into the press and the prices drop even more
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Dan McGeehan | 16 Nov 2009 5:12 pm
Let's put this in perspective before all the doom mongers come out. A separate article on the 13/11/09 stated that house prices have risen for six consecutive months. Additionally all residential property transactions where up 0.7% in October from the following month. This article is simply one company stating that asking prices are down 4k on average which may not translate into a reduction in house prices. In the last week there have been a number of positive stories about the market and from lenders which I beleive signal the market is moving up.
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JOHN BENNETT | 17 Nov 2009 12:30 pm
Cautious words but they should be heeded.
I agree that optimism should not be stiflied but the upturn is fragile and needs to be nurtured. The balance at the moment is just about right. The last thing we need is talking the market up or down !
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