Landlords may be alarmed at Rightmove’s latest asking price market snapshot which shows an average 1.3 per cent fall this month.
But the portal insists the drop is typical for this time in summer.
This is the first price fall recorded by Rightmove this year, but it says traditionally prices do fall in August and this drop is on a par with the average of 1.3 per cent over the last 10 years.
It says that during school holidays, distracted home-movers - especially those in higher-priced homes - put plans on hold until the autumn, while more urgent sellers coming to market are pricing more competitively in order to capture the attention of a suitable buyer quickly.
Rightmove’s Tim Bannister says: “The sixth consecutive interest rate rise, this time by 0.5 per cent to 1.75 per cent, will no doubt be in the minds of many would-be home-movers. Together with the rising cost of living, it will lead to re-considerations of what they can afford to borrow and repay each month.
“Right now, the mismatch between supply and demand is still the biggest factor influencing asking prices outside of seasonal trends.
“Although demand continues to soften, and supply constraints are improving, there is still a massive imbalance. Buyer demand this month is down four per cent on the frenzied market of 2021, but is still 20 per cent higher than in 2019.
“The number of new listings coming to market is up 12 per cent on the same period last year, though it is six per cent down on 2019, while available homes for sale are down 39 per cent on 2019. Buyer enquiries to agents do not appear to have been particularly dented by the most recent interest rate rise, suggesting that many buyers are still committed to moving, and incorporating rate rises into their financial planning.
“Several indicators point to activity in the market continuing to cool from the lofty heights of the last two years. It’s likely that the impact of interest rate rises will gradually filter through during the rest of the year, but right now the data shows that they are not having a significant impact on the number of people wanting to move.
"Demand has eased a degree and there is now more choice for buyers, but the two remain at odds and the size of this imbalance will prevent major price falls this year.”
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