Summer Dip for Property Prices Bigger than Expected

The average asking price of homes coming on the market across England and Wales is this month down by 2.9 per cent – or roughly £7,750 – compared to July, according to the latest Rightmove index.

Although August is of course a quieter time of year producing an average monthly price fall of 1.6 per cent each summer over the last 10 years, this month’s rather more dramatic fall is the largest decrease ever recorded by Rightmove in a summer period.

The fall has been exacerbated by London recording a 5.9 per cent drop, which is the largest of three consecutive monthly falls for the capital’s homes on sale.

Notwithstanding the falls, new seller asking prices across England and Wales are still 5.3 per cent or £13,202 higher than they were a year ago. But just three months ago, asking prices were 8.9 per cent more than a year earlier, so this demonstrates just how sharp the most recent drops have been.

Sales activity is traditionally strongest in the first half of the year, and this year seems to be following that pattern according to Rightmove. A drop in buyer demand and an eight per cent increase in the volume of property coming to market compared to 12 months ago means more competition to sell, hence asking prices declining it says.

Over the past 12 months, detached homes are up 4.9 per cent, semis up 7.9 per cent, terraced homes increased by 9.6 per cent and apartments are up 9.9 per cent.