New data from Rightmove has revealed that asking prices for homes in the UK have experienced their most significant August decline since 2018.
This downward trend follows four consecutive months of decreases in house prices as the cost of homes coming to market fell 1.9% this month.
During the five weeks leading up to August 12, new home sellers placed their properties on the market with an average listing price of £364,895. This figure is £7,012 lower than the preceding month, marking the most substantial decrease for this period of the year since the onset of the Covid-19 pandemic.
According to mortgage lender, Halifax, the average house price experienced a 0.3% decrease in July. The consensus among most analysts is that house prices will continue their descent throughout the remainder of the year. Despite the fall in average house prices, Hannah points out that prices are still nearly 20% higher than their levels prior to the outbreak of the Covid-19 pandemic in August 2019.
David Hannah, Chairman at Cornerstone Group International said, “The predictable downward trend in house prices comes as no surprise, given the lingering effects of rate uncertainty and affordability challenges in the market. Prospective buyers are still caught between adopting a cautious approach and displaying heightened assertiveness while making property offers.
“Nevertheless, there is a glimmer of hope as certain lenders are reducing mortgage expenses in response to the approaching peak of the bank rate. This suggests that although market sentiment may remain restrained, I hold the belief that the second half of this year will witness an improvement.”