The average price of a home in the UK has dipped by almost £5,000 in August, according to the latest report by Rightmove. This represents a fall of 1.3%, which is the first drop this year. However, these results are not unexpected, and August is traditionally a quiet time in the property market, as many people are away on holiday.
The Hull Daily Mail reports that despite the gloomy predictions for the economy, demand among homebuyers is expected to remain strong. This is partly because of a longstanding undersupply of homes in the UK, which creates a situation where there are always more buyers than sellers in the market.
Tim Bannister, Rightmove’s director of property science, said: “A drop in asking prices is to be expected this month, as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be home movers become distracted by the summer holidays.”
He added: “Sellers who want or need to move quickly at this time of year tend to price competitively in order to find a suitable buyer fast, with some hoping to complete their move in time to enjoy Christmas in a new home.”
He continued: “Nevertheless, we’re still expecting price changes for the rest of the year to continue to follow the usual seasonal pattern, which means we’ll end year at around 7% annual growth, even with the wider economic uncertainty.”
Despite the fall in property prices, they are still £20,000 higher on average compared to June 2021, representing a 7.8% increase. The average price of a house in England is now £305,000, and for the whole of the UK it is £286,000. The rest of the year is expected to see a steady demand, with no steep crashes, despite the economic challenges which lie ahead.
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