Updated: Apr 6
According to new data from Rightmove property prices have fallen for the first time this year!
In their most recent House Price Index, Rightmove revealed that the value of homes coming to market has dropped by almost £5,000.
Since Rightmove started their first ever house price index roughly 20 years ago they have reported a consistent rise with property prices almost doubling within that time. Whilst they have recorded a consistent rise for two decades, their latest figures shows that prices have started to decline for the first time this year. Rightmove say that this drop in the average asking price for properties is due to rising interest rates, driving a sudden depreciation in property value.
Will prices continue to drop?
Rightmove has revealed that the national average asking price for new properties hitting the market is now just £365,173, down £4,795 or 1.3 percent in August.
This decrease may seem minor and insignificant, however, according to Rightmove, this drop is typical of the housing market at this time of year, and the 1.3 percent decrease is “on par” with the average decrease in property valuations recorded in August over the past decade. While not a large drop in price and ‘expected’ this has been dubbed a return to a more predictable property market following a period of instability and unpredictability.
Where has seen the largest drop in property value?
With the overall average valuation of property dropping across the UK it is expected that some areas will see a more dramatic drop than others.
Here are the 7 areas that have seen the largest drop in property price (according to Rightmove):
Although still firmly holding the title for one of the least affordable places to purchase in the UK, London has seen the fastest drop in property prices. With prices taking a 3.5 percent drop between July and August. Average asking prices for property in London are now at £668,587.
Scotland comes in with the second fastest price drop, at a 1.9 percent decrease between July and August. The average asking price of a property in Scotland now being £181,913, making it one of the more affordable areas to purchase property in the UK.
3. South East
The area seeing the third fastest drop in house prices is the South East of England, with asking prices falling by 1.7 percent. Asking prices for homes in this area now averages around £483,842, meaning despite one of the fastest drops in price it is still one of the most unaffordable areas to buy in the UK.
4. North East
Falling just behind the South East with the fourth fastest drop at 1.4 percent between July and August is the North East. The average house price in this area is now at £181,420, making it one of the most affordable places in England.
5. Yorkshire & the Humber
With the fifth fastest drop in average house price is the rural region of Yorkshire and the Humber. The average asking price in this area is now at £241,489, which is a 0.9 percent drop from July to August.
6. East of England
Sixth in this list is the East of England with a 0.8 percent decrease in house prices between the months of July and August. The average asking price for property in this region has now fallen to £425,002. However this means it is still selling above the national average UK asking price of £365,173.
7. South West
Last on our list and coming in with the seventh fastest price drop is the South West of England with a drop of 0.6 percent between July and August. Average asking prices in this region are now around £389,064. Although it has seen a recent drop in property prices it has one of the largest year-on-year price increases of all areas, with an 11 percent rise in value since August 2021.
In relation to these figures being released Tim Bannister, Rightmove’s director of property science said “For those looking to move who are concerned about interest rate rises, it’s important that they get a mortgage in principle early on in their moving journey to understand what they could afford to borrow, and find out about the rates available to them to assess what they are able to repay each month.”
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