UK House Asking Prices Fall £5,000

Online property site Rightmove has issued results suggesting that the average asking price for property in the UK fell by £4,795 between July and August.  That’s a fall of 1.3%.

The average asking price is now £365,173.  Rightmove has put this down to summer vacations.

Comment

We suggest this is bigger than just summer holidays.  House prices usually rise in summer season as demand increases and people look to sell when their property looks its best. 

• Interest rate increases are here with more to coming meaning we have less money to spend.
• Wage rises are not increasing as quicking as inflation meaning we have less money to spend.
• Recession is coming meaning some people will loses their jobs i.e., less money to spend.
• Losing jobs means some being forced to sell or lenders repossessing mean prices fall.

We believe this is just the start of a much needed property price adjustment.  We believe we are looking at a period of around a year of lower prices before inflation starts to be tamed, wages catch up and we enter the next property cycle.