As the traditionally busier spring housing market comes to a close, new-to-the-market sellers are asking on average 0.9 per cent (-£6,009) less than those that came to the market last month.
According to Rightmove’s House Price Index for June 2018 the annual rate remains negative, with prices 1.0 per cent cheaper than a year ago.
Miles Shipside, Director and Housing Market Analyst at Rightmove, comments: “This month sees the largest fall in the price of property coming to market since January, as new-to-the-market sellers recognise that the traditionally busier spring selling season is drawing to a close.
“The end result is that for the tenth consecutive month new sellers in London are marketing their properties at cheaper average prices than a year ago. London’s monthly fall of 0.9 per cent and annual decrease of 1.0 per cent is in contrast to the national average monthly rise of 0.4 per cent and the national annual increase of 1.7 per cent in new seller asking prices.”
With 16.4 per cent more available property on the market compared to this time last year, sellers will need to compete harder on price to get buyers’ attention. This is creating a buyers’ market in some areas. And, with the normally quieter summer holiday months approaching, selling conditions are likely to remain challenging.
Shipside notes: “With the normally more active spring buyer market over and with some potential buyers likely to be distracted by summer holidays and World Cup-itis, the goal posts have just moved.
“Sellers in locations that have seen larger percentage increases in the number of available properties will have to price lower than properties they are competing against, as there are few better tactics than a bargain price to tempt buyers.”
At Beavis Morgan, we 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 overseas 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.