The biggest-ever monthly drop in asking prices was reported by Rightmove this morning.
However, the portal measured 76,823 asking prices of properties put on sale by agents from November 9 to December 7 – almost every single one of which would have been priced before George Osborne’s SDLT reforms on December 3.
The average asking price was £258,424, down nearly £9,000 or 3.3% on the previous month’s figure of £267,127.
The figure means that asking prices have risen 7% over the year.
Notably, while there have been some very large annual gains in London boroughs – for example, 22.5% in Hackney – every single borough in London had a monthly drop in new asking prices, as reported this morning.
Rightmove is forecasting further price rises for next year of between 4% and 5%.
Rightmove director Miles Shipside said: “Whilst a near £9,000 drop is the biggest ever reduction in the price of newly marketed property compared to the month before and a sign of a market continuing to cool, a fall is not unexpected in December.
“Though sellers are fewer in number at this time of year, those that do come to market are often keener to sell so price lower in a bid to stand out.
“The overall picture for the year is still one of a much recovered property market, with sellers and their estate agents confident enough to be putting property on the market at a higher price on average than a year ago, although we predict a slower pace of price growth in 2015.
“This means that sellers and agents will have to work harder to achieve a sale next year.”
The average number of properties for sale per estate agent branch is 57, according to the site.
Separately this morning, Hamptons International forecasts that house prices will rise 4% next year and by 4.5% the year after across England and Wales.
The firm, part of Countrywide, said Stamp Duty reforms will boost prices and transactions in the first half of next year, in all but the most expensive housing markets.
It said that price growth in London would be subdued but that overall, a boost in sentiment on the back of Stamp Duty reform would reduce the impact of any pre-election slowdown.
London again! Take the capital with its massive housing stock out of the equation and nearly everywhere else is recording stable or slightly rising prices. It doesn't take a rocket scientist to realise that prices will drop when they have been going through the roof unsustainably for two years. The statistics are bound to show further falls next month when the chancellor's stamp duty reforms have had an effect there. Luckily, for most of the rest of people in England and Wales these reforms will keep prices and the market buoyant and increase transactions. It's about time London was omitted from national data as the city state distorts the figures so much these days.
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