Property portal, Rightmove, has released their House Price Index which has indicated that 7% of unsold properties had their prices reduced last month. This is a slight increase from October 2019 where 7.5% of unsold properties were reduced in price.
The figure in October is in fact double compared to October 2021 where 4% of properties saw price cuts.
The House Price Index further showed that the average house price of new listings is now valued at 1.1% which is lower than the month before. Annual growth is growing at a slower pace of 7.2%, down from 7.8%.
This now puts asking prices at £366,999.
In terms of regions around the UK, the South West saw the highest annual house price increase with average prices increasing by 11.9% From September 2021, to September 2022. The North East had the lowest annual price growth which stood at 5.8%.
More specifically, over the last month, London average house prices have fallen by almost 2%, or £13,000. One reason for this is that buyers are becoming more cautious amidst the cost-of-living crisis.
Despite prices dropping from October to November, the annual price growth still remains positive in the capital with prices up by 5.3%.
Buyer demand is still increasing but figures show that compared to October last year, demand is down by 20%.
First-time buyers continue to be the most affected within the property market. Year-on-year demand is down by 26% October and second stepper demand is down by 17% according to the property search website.
The analysis found that there is a 135 annual increase for new sellers joining the market, whilst the average number of stock available per agent has slightly dipped from 50 to 49 in October.
Tim Bannister, Rightmove’s director of property science, commented: “The now largely superseded mini-Budget sped up the slowing of market activity that we had been seeing since the summer, and we’re now in another state of limbo as we wait for any surprises or help in Jeremy Hunt’s Autumn Statement on Thursday.
“The frenzied market of the past two years has turned into a more normal market more abruptly and less smoothly than we were expecting.
“Though many are getting on with moves, especially those with a purchase already agreed, understandably there are people who are pausing for thought.
“Some buyers have decided to turn their attention to Christmas instead, and be part of the New Year jump in home-moving activity.”
He continued: “The era of historically low interest rates and the buying frenzy are over, which could make way for a more normal market that opens up potential opportunities for those who were put off entering the frantic market over the past two years.”