House prices have fallen but there are some exceptions
NEW seller asking prices in the UK have dropped by an average 1.7 per cent this month, though Yorkshire sellers dropped their prices by an average 2.3 per cent, according to Rightmove. Asking prices usually drop at this time of year, as serious sellers price more competitively to attract buyers in the lead-up to Christmas.
However, this year’s November drop is the largest in five years, which has led more new sellers to adopt realistic price expectations from the outset of marketing to tempt potential buyers to act. As we approach the end of 2023, key indicators point to a market that, while challenging, has been more positive than many predicted.
Tim Bannister, Rightmove’s director of pProperty science, says: “We would expect to see a drop in new seller asking prices in the last couple of months of the year, as serious sellers start to separate themselves from discretionary sellers and cut through the Christmas noise with an attractive price to secure a buyer.
“However, the larger than usual drop this month signals that among the usual pricing seasonality, we are starting to see more new sellers heed their agents’ advice and come to market with more enticing prices to stand out from their over-optimistic competition.”
Rightmove says that despite the turbulent end to 2022, this year has been better than many expected with the number of sales being agreed 10 per cent below the same period in 2019, improving from being 15 per cent below 2019’s level last month.
Tim adds: “Last week, the
Bank of England opted to hold the Base Rate for the second consecutive time, which has supported buyer demand and helped to keep it in line with 2019’s level.
“Now, many will be looking to the forthcoming Autumn Statement on November 22 for any policy announcements or market incentives.”
Meanwhile, analysts at the Halifax bank have calculated that more than 70 local authority areas have seen average house prices rise over the last year, bucking the national trend.
The analysis looked at typical house prices in more than 300 local authority areas across Britain in the three months up to September this year, and compared them to the equivalent figures from 2022.
At a UK level, house prices are down by an average 3.9 per cent over the last year. However, Powys, known for its stunning landscape and attractive villages and market towns, saw an annual house price growth of
17.4 per cent. Powys is the largest but least densely populated county in Wales.
Next is East Lindsey in Lincolnshire, where prices are up by 13.3 per cent and third is Moray, which has seen the biggest increase in house prices in Scotland over the last year, up by 10.7 per cent.
The other areas in the top ten places where prices have risen are Babergh in the East of England with a 10.3 per cent gain; Sunderland up 8.9 per cent; Ealing up 7.5 per cent; Westminster 7.4 per cent; Bolsover 7.2 per cent; Cumberland 6.7 per cent and Rossendale, 6.7 per cent.
Halifax says limited supply of properties for sale could be a boosting factor along with rural surroundings.
The regional house price table for the third quarter of the year saw every region post a decline. The South East saw the highest price fall with a 5.7 per cent drop. Yorkshire fared better with a 2.8 per cent fall, the third lowest decline in the table, while the North East posted a 1.9 per cent drop and the North West a 2.4 per cent fall.