Britain Experiences First National Year-On-Year Property Price Fall Since 2012
Property portal Rightmove have reported that poor transaction figures and declining house prices led to the first national year-on-year price fall since November 2011.
Newly marketed property is now, on average, £607 or 0.2% cheaper than the property market 12 months earlier.
According to Rightmove, property for sale in November has fallen by 1.7% from a month earlier. This equates to a significant average reduction of £5,222. Although the market is used to price reductions, this is the most severe drop since 2012.
Miles Shipside, Rightmove director and housing market analyst, said: “This is a welcome effort by sellers to minimise the usual pre-Christmas market slowdown. Some new-to-the-market sellers and their agents have acted early to try to improve the buying mood and avoid the traditional ‘buyer humbug’ dislike of Christmas housing activity.
“Seven years ago price rises started rippling out from the capital into the commuter belt in the South East. That ripple effect has now been reversed, with some of the London market price re-adjustment reverberating out into the commuter belt. New sellers of property now coming to market in this region have belatedly lowered their price sights. Higher end former hot-spot towns are now among the biggest annual fallers with Rickmansworth (down 7.1 per cent), Esher (falling 6.4 per cent) and Gerrards Cross (a drop of 6.0 per cent) now cold spots following price rises of nearly 40% over the seven preceding years.
“While many thought that the down-to-the-wire Brexit deal uncertainty would hold people back from buying, more buyers have actually jumped in. Some buyers see this pre-Christmas price lull as a gift to their negotiations. It proves that people need to get on with their lives and will continue to buy homes if the underlying economic fundamentals remain strong.”
Whilst the country adjusts to Brexit uncertainty, the market considers the fact it may have reached an affordability ceiling point and poor market movement in London and the South East, the market may have to accept that prices will remain unstable in the short-term.
Have you experienced a slower market this winter? Will Brexit discourage people from selling their home until the political landscape becomes clearer, or, will the reduced prices have the intended impact of encouraging sales?