Property asking prices decrease by £4,000 in a month

ASKING prices have fallen by £4,000 in a month, property website Rightmove has warned, with the number of reductions doubling compared with last year.

More sellers are dropping prices as they face a 20pc fall in demand from buyers spooked by sky-high mortgage rates and economic uncertainty. Asking prices dipped by 1.1pc to an average of £366,999 this month, according to Rightmove. This is a shift from the past two years, although 2020 and 2021 were affected by the pandemic. The proportion of unsold properties that have been reduced in price doubled from 4pc in October 2021 to 8pc last month.

Tim Bannister, of Rightmove, said the growth in house prices during the last two years was “unsustainable against the economic headwinds and growing affordability constraints”.

He said: “We’re hearing from agents that existing and new sellers understand that to sell in the current market they need to price competitively.”

The biggest drop in demand has been from first-time buyers, which is 26pc lower than it was this time last year.