House prices across the UK dropped by over £5,000 in November, with sharp falls in the South as sellers lowered their asking price aspirations.
According to property website Rightmove, the price of property coming to market fell by 1.7 per cent (-£5,222) this month, the largest November drop since 2012. This took the average price of a property down to £302,023.
In an effort to minimise the usual pre-Christmas buying slump which has been fuelled by stretched affordability and Brexit uncertainty, new sellers are pricing their property more realistically.
Across the board, all regions have seen a monthly price fall, with largest falls in the South of England and the upper price sector:
- Higher end London commuter towns, where prices have risen steeply by over 40 per cent since 2011, have experienced the most significant price falls
- The annual national rate is marginally negative (-0.2 per cent, -£607) for the first time in seven years
- The number of sales agreed has increased nationally by 1 per cent compared to the same period a year ago, indicating some sound underlying fundamentals
|
National average asking prices |
||||
|
Month |
Avg. asking price |
Monthly change |
Annual change |
Index |
|
Nov 2018 |
£302,023 |
-1.7% |
0.2% 233.5 |
233.5 |
|
Oct 2018 |
£307,245 |
+1.0% |
+0.9% |
237.5 |
|
National average asking prices by market sector (excluding Inner London) |
||||
|
Sector |
Nov 2018 |
Oct 2018 |
Monthly change |
Annual change |
|
First-time buyers |
£188,571 |
£190,587 |
-1.1% |
+0.3% |
|
Second-steppers |
£272,017 |
£274,789 |
-1.0% |
+1.5% |
|
Top of the ladder |
£531,775 |
£545,020 |
-2.4% |
-0.3% |
Source: Rightmove, November 2018
Rightmove Director Miles Shipside says: “New sellers and their agents are reacting to market forces and lowering their pricing aspirations by more and sooner than usual. Stretched buyer affordability and the cooling markets in the south and in upper price brackets have combined with the ongoing political uncertainty to change pricing optimism into pricing realism.”
Our property specialists at Beavis Morgan, have extensive experience in advising individuals and businesses on all aspects of the property market. We act for a broad range of property investors and developers who actively need advice on how to best structure their property deals, both to ring-fence and protect their property assets, as well as to minimise the tax arising from their business operations.
We also offer specialist services to identify business opportunities for international investors looking to enter the UK property and business market – and we provide a comprehensive range of professional services to help you make the most of your investment in the UK.
For further information contact Steve Govey or your usual Beavis Morgan Partner.