Asking prices for newly listed homes fall by £12,000 in two months, Rightmove says

Asking prices for newly listed homes have fallen by almost £12,000 in the past two months, data from Rightmove shows.

The average asking price fell for the second month in a row in December, from £366,592 to £360,197, a fall of 1.7 percent.

This follows on from the previous month, when average asking prices fell by £5,366 between October and November, representing a decline of 1.4 per cent.

This means the typical newly quoted asking price has fallen by £11,761 in the last two months.

While this may sound like a big drop, it is broadly in line with the seasonal norm in the run-up to Christmas, according to Rightmove.

This is because buyers tend to postpone their plans until the New Year, with sellers’ pricing power diminishing as Christmas approaches.

However, despite the festive lull, activity remains substantially stronger than in the same period a year ago, the real estate portal said.

It says the number of agreed sales has increased by 22 percent, and new buyer inquiries have increased by 13 percent.

Tim Bannister, a property expert at Rightmove, said: ‘New sellers have to work particularly hard in December to capture the attention of buyers distracted by Christmas parties and festivities, and the average monthly decline of 1.7 per cent is a fitting gift for those who do. still buying houses instead of presents.

“Despite this monthly decline, prices have increased compared to this time in 2023, largely in line with our forecast of a 1 percent price increase this year.”

There are also indications that some buyers are trying to meet the looming March 31 stamp duty deadline, and sellers are responding by choosing to go to market now.

Sellers of smaller properties in more expensive areas are trying to part-exchange their properties or simply sell before the deadline to avoid the higher stamp duty, despite now having to act very quickly.

This is because the threshold at which movers start paying the tax drops from £250,000 to £125,000, meaning anyone buying a property over £125,000 will have to pay up to £2,500 more in stamp duty.

Prices are also holding up best in the first-time buyer sector, particularly homes priced below the £300,000 threshold.

According to Rightmove, the number of sellers of typical one- and two-bedroom starter homes in London has increased by 20 percent in the past four weeks, the most of any regional market sector.

In second place is the South East, where one and two bedroom homes coming onto the market are increasing by 16 per cent, which is also the second most expensive region.

The price at which stamp duty is charged on first-time purchases will return to £300,000, from the current level of £425,000.

For first-time buyers, this could mean that instead of paying no stamp duty on a purchase worth £425,000, they will soon be paying £6,205.

The costs become even higher for first-time buyers who buy a home with a value between €425,000 and €625,000.

A first-time buyer purchasing a home worth £625,000 currently pays £10,000 in stamp duty. But from April 1 that will rise to £21,250, up from £11,250.

Interestingly, prices are holding up strongest for first-time buyer properties in more affordable areas, which are likely to be less affected by the stamp duty changes as most first-time buyer homes fall well below the £300,000 resuming tax. threshold value.

Prices for typical starter homes in the Northeast rose 1 percent this month, in stark contrast to this month’s national decline of 1.7 percent for all property types.

Want to take advantage of the Boxing Day boom?

Last year Boxing Day saw a record number of new sellers launch onto the market for the time of year, giving buyers a new property choice.

Meanwhile, buyer inquiries rose by 273 percent between the lull on Christmas Day and Boxing Day.

Rightmove’s Tim Bannister expects a similar story to play out this year.

“We are now looking ahead to the traditional Rightmove Boxing Day upturn in home mover activity, which has increasingly become a key date in the housing market calendar,” he said.

‘Each year, our real-time data can pinpoint the exact moment the turkey is ready, the family games run out, mobile devices are picked up and potential movers flock to Rightmove and start their move before 2025.

“If this year is anything like recent years, the early birds who start their search the day after the festivities are over will likely be rewarded with a wide choice of new properties to consider.”

Steven Holden, director of Holden Copley estate agents in Nottingham, added: ‘Of course, December brings a seasonal slowdown in the number of new listings as many shift their focus to the festivities.

‘However, we expect the traditional post-Christmas surge in activity to kick-start the New Year, with Boxing Day marking the start of a busy period.

‘Getting a valuation now or in early January will put potential sellers in a strong position to take advantage of buyers who are actively looking for appropriately priced properties.’