The U.K.’s property market has hit a summer slowdown, resulting in price changes nearly coming to a halt in July, according to a report Monday from Rightmove.
Prices for newly listed homes dipped by an average of 0.1% compared to June, the real estate website found, bringing the average price for a property in the U.K. to £309,191 (US$408,936), a fall of £248 (US$328).
Scotland and the East Midlands were the best performing regions—both logging price increases of 1.5% monthly—as prices were pushed up to £158,864 (US$210,161) and £226,310 (US$299,385), respectively.
However, as overall prices fell, listing inventory rose 8.6% across the U.K. compared to the same time last year. But there has been no matching increase in buyers; in fact the number of sales fell 0.2% in the same time.
While an increase in seller numbers is a welcome sign of more liquidity in the U.K.’s generally stock-starved market, the increase has come at a quieter time of year and sellers will have to work harder to attract a buyer, according to Miles Shipside, Rightmove director and housing market analyst in the report.
From Penta: Banksy Hits London
An increase in stock has to be matched by a corresponding increase in buyer demand “if vendors are to avoid reducing guide prices to secure a sale,” said Nick Leeming, chairman of estate agents Jackson-Stops, in the report, who described the market as finely balanced.
One-third of properties currently on the market have been discounted at least once since they were first listed the highest at this time of year since 2011, the report said.
“A reduction in asking price is often a sign of initial over-pricing by estate agents and sellers, and whilst a price cut can boost buyer interest you have to overcome the negativity that arises when a property has not been snapped up quickly,” Mr. Shipside said.
Follow Mansion Global:Facebook | Twitter | Instagram | LinkedIn | Messenger
Write to us: email@example.com