After unprecedented price records have been set across the board in the last month, the UK housing market saw its biggest price drop in ten months and buyers focus on the festive season.
According to the most recent edition of Rightmove’s House Price Index, the average price of houses coming to market dropped by over £2000 (-0.6 per cent).
This is the largest single-month drop since January 2021, where house prices dropped almost a full percentage point as it was believed that it was too late for purchases to benefit from the stamp duty holiday, which was ultimately extended until September.
For estate agents in Hull, house prices have continued to rise, with Zoopla estimating that the current average value has increased by a full percentage point over the past three months to reach £149,223.
Given the upcoming festive season and the range of distractions that causes for buyers and sellers alike, it is difficult to truly ascertain whether this drop is part of a traditional lull in the market as people prepare their homes for Christmas rather than viewings or the first step in a larger trend.
The best time to know for sure will likely be the buyer boom that traditionally happens on Boxing Day, as prospective buyers take some time out of the busy festive season to search for property online.
With this in mind, there has been a reported increase in sellers getting their property ready to sell, with a 14 per cent increase in valuation requests compared with the previous year.
An increase in supply, mixed with a potential interest rate rise on the horizon may have a further effect on house prices, but this is unlikely to be felt until the new year.
