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Sellers drop asking prices

It seems that sellers are dropping their asking prices by 1.6%. This is apparent from the current Rightmove monthly report.

What is the report based on? Rightmove take there property base which is estimated to be around 90% of the property market. The results provide useful figures for residential property prices in England and Wales.

Rightmove produce a monthly report for the UK housing market based on a survey of its properties. This months reveals some interesting trends.

  • For example this month sees the first fall recorded in 2011 as new sellers drop asking prices by 1.6% (£3,797)
  • Number of new sellers down 12% on July 2010, as many owners are unable to raise the deposit required to fund their next move
  • Retail price inflation outstripped property prices by 14% over the last four years, improving buyer affordability but undermining perception of bricks and mortar as a hedge against inflation
  • 7 out of 10 properties marketed so far in 2011 are still on the market, indicating that many equity-poor sellers are unwilling or unable to reduce their prices further—an opportunity for the equity-rich to cut their prices and do deals

Other reports this month suggest things aren’t moving as fast as first predicted. For example, the Council of Mortgage Lenders (CML) reports,  Mortgage lending was still lower than a year ago and total mortgage lending was only slightly down on last year’s figure, at £63.7bn.

Sellers drop asking prices

Rightmove reports - Sellers drop asking prices

Will the property market turn around?

Rightmove director Miles Shipside comments:

“The proportion of those people expecting prices to be the same one year from now has grown for seven consecutive quarters to reach the highest level we have ever recorded. The most common view, therefore, is that we have seen the end of price falls, though there are many different local permutations. Overall, the proportion expecting prices to be higher in 12 months’ time stands at 26.2%, while 26.9% forecast lower prices, again reflecting the mixed picture depending on location. Rightmove’s detailed analysis of price confidence at a local level reveals some more extreme views, which serves to highlight the patchy and very local nature of the market in this downturn.

For example, 11.8% of respondents in Central London forecast that prices will have increased by 10% or more in a year’s time. By contrast there is an expectation of falls of 10% or more in the more northerly locations.

posted by Zane in Guide,Lending,Property,Rightmove and have No Comments

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