House prices in August fall at their fastest pace in half a decade
House prices have fallen at their steepest pace in August since 2018 as sellers try to attract interest amid a falling cost of living and sky-high interest rates.
Median sales prices fell 1.9 percent compared with July, according to figures from the Rightmove real estate website.
It meant the typical house was on the market for £364,895, up from £371,907 the previous month. Prices also fell 0.1% compared to the same month last year, the first year-on-year drop in asking prices since 2019.
And the number of agreed sales is now 15 percent lower than it was in 2019 before the pandemic, “as higher mortgage rates mean some have had to put their moving plans on hold for now,” Rightmove said.
It is the latest sign that the housing market is being hit by inflationary pressure on household income and a rise in interest rates to the highest level since 2008.
Squeeze: A drop in sales prices is not unusual during August, as sellers look to increase interest during a quiet period for the market.
A drop in sales prices is not unusual during August, as sellers look to increase interest during a quiet period for the market.
But the latest drop is double the level of the typical 0.9 percent drop. Rightmove said average sale prices were now £8,000, or 2 per cent, lower than at their peak in May.
But that follows a sharp rise in recent years and is 19 per cent, or £59,000, higher than August 2019.
Rightmove said some sellers were “taking the initiative and following the advice of their agents to set prices that are competitive for current local market conditions.”