The average asking price of a property in the UK, according to the Rightmove portal, fell by 1.9% in August 2023, which is the largest monthly decline since August 2018.
The average asking price of a housing object was 364,895 pounds, which is 7,012 pounds less than in July. Thus, the decline continues for the third month in a row.
Agents blame high inflation and the Bank of England's highest interest rate since 2008 (5.25%) for the slowdown in economic growth. Higher interest rates have led to an increase in the cost of borrowing, which scares buyers away from the housing market.
Despite the fact that average asking prices have been falling since May, many sellers still remain in the black due to the strong appreciation of real estate in recent years.The cost of apartments and houses is still 19% higher than in August 2019, that is, on average by 59,000 pounds.
The number of transactions, according to Rightmove, decreased by 15% compared to 2019. The number of properties available for purchase is about 10% less than in 2019, but it takes an average of 55 days to find a buyer compared to 33 days a year ago.
Average asking prices for properties entering the market fell in August in 10 of the 11 regions of the UK, including Scotland and Wales. Only in the North-East there was a slight increase in prices by 0.8%. The average asking prices in this region are the lowest in the country and amount to 186,144 pounds sterling.
In London and the South-West, the largest monthly price drop in August was observed -2.3% and -3.2%, respectively. In London, the highest average asking price is 672,961 pounds.
Source: Forbes
