The average price of property coming to market has dropped by 1.3%, or £4,795, this month, to £365,173, the latest data from Rightmove shows.
This is the first price fall of the year, though traditionally prices do fall in August, and this drop is on a par with the average of 1.3% over the last ten years.
Property industry reaction:
James Forrester, managing director of Barrows and Forrester, commented: “The first signs of a cooling market may seem a cause for concern, but the reality is that the herd of homebuyers to have stampeded through the UK property market since the start of the pandemic are simply pausing for breath.
“While market conditions have been far from predictable in recent months, we’re now seeing a return to the regular seasonal trends and patterns that appear each and every year, with the peak summer months always a traditionally quieter time.
“Once the chaos of the school summer holidays has come and gone, market momentum will return in the run-up to the Christmas period.”
The director of Benham and Reeves, Marc von Grundherr, said: “The increasing cost of both buying and borrowing has started to dampen the insatiable appetite of the nation’s buyers ever so slightly. When coupled with the fact that the drought of new homes entering the market is now starting to ease, a marginal reduction in asking prices was always going to materialise.
“London continues to present a mixed picture. While the capital’s property market has largely struggled to regain any meaningful level of momentum, it’s important to note that the performance of individual boroughs is as diverse as the wider regional outlook.
“While some boroughs, such as Barnet, have seen notable monthly declines, other more peripheral boroughs are enjoying strong and sustained rates of monthly and annual price growth.”
The co-founder and CEO of GetAgent.co.uk, Colby Short, commented: “Although it may seem a long way off, Christmas is really just around the corner for those hoping to be carving their Christmas turkey in a new home. With buyers no longer acting with the same desperation to secure a home, those looking for a quick sale are having to price more realistically in order to entice them into a purchase.”
Chris Hodgkinson, managing director of HBB Solutions, remarked: “The first signs of a cooling market where seller expectation is concerned provides further evidence that the market is now starting to turn. While we’re a world away from a property market crash, those looking to sell are best advised to price appropriately based on their local market conditions.
“Failing to do so will see their home sat for sale with little to no interest for months on end. Those looking to sell their home quickly must accept and adapt to the fact that it’s no longer the sellers' market it was just a few months ago.”
The CEO of Octane Capital, Jonathan Samuels, commented: “All things considered, the market remains in fine health, but the mortgage sector is currently very unsettled following a sixth consecutive base rate hike and the largest in over a quarter of a century.
“There’s no hiding the fact that this will have a direct impact on the borrowing ability of the nation’s homebuyers which, in turn, will impact the price they are willing to pay for a property.
“So while this may be the first drop in asking prices seen so far this year, it’s certainly not going to be the last.”
Founding Director of Revolution Brokers, Almas Uddin, added: “We’re now seeing what was a previously overheated property market start to slow, along with a return to what can historically be considered normalised interest rates.
“For the nation’s sellers, this means a slightly more pragmatic approach when pricing their property. Unfortunately, for the nation’s homebuyers, it means the monthly cost of a mortgage has already climbed quite considerably and this cost is likely to keep on climbing throughout the remainder of the year.”