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Asking prices fell in November, but remain up 6.3% compared to last year

Christina Hoghton
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Christina Hoghton

Sellers are hoping to get an offer before Christmas by lowering their prices

Asking prices recorded their largest monthly drop since January, according to Rightmove.

The property portal found that the average asking price for a property coming to market fell by 0.6 per cent to £342,401 in November.

That was the largest monthly drop since January this year, although average asking prices were still up by 6.3 per cent compared to a year earlier.

Rightmove said the monthly decline was down to sellers trying to attract buyers ahead of a post Christmas surge in buyer activity.

Tim Bannister, director of property data at Rightmove, said: “Sellers who come to market this close to the distractions of Christmas often have a pressing reason to sell, so naturally price more attractively to grab the attention of prospective buyers who may be otherwise occupied. We expect this downward price trend to be relatively short-lived, though sellers who are in a hurry will continue to need to attract buyers for most of December as well.

“Plus, if they’re able to secure a buyer for their home early in the new year and they are looking to buy again, it puts them in a powerful position to secure their next property.

“In the current market, it’s a real advantage to be a “power buyer”, and have already sold your current home subject to contract when looking for somewhere to buy, putting you ahead when trying to buy another property, where there are other offers already on the table.”

Peter Beaumont, CEO of The Mortgage Lender, added: “House price growth has finally dipped after months of being squeezed from all corners. However, there are still not enough homes on the market to meet the ever-growing demand from buyers, which until it evens out, will keep putting pressure on asking prices.

“On top of this, UK-wide shortages mean material costs have risen significantly, which along with surging labour costs, is pushing up the prices of new builds. It is also making extensions and renovations more expensive, which will impact sales in the longer term. This will have a domino effect on house sales, as sellers are forced to up their asking prices.”