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Asking prices up just 1% in October

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
15/10/2018

It’s the lowest monthly rise since 2010, as the impact of buy-to-let changes becomes clear

Asking prices rose by 1% in October to £307,245, according to Rightmove, the lowest increase seen since October 2010.

According to the property portal the national average has been dragged down by a 0.1% fall in the asking prices of smaller properties of two bedrooms or fewer.

Rightmove noted this is normally the target market for stretched first-time buyers and buy-to-let investors, but landlords are currently less active.

Miles Shipside, director of the business, said: “With the government using the tax system to try and help first-time buyers while deterring out-of-favour landlords, prices in this sector have been subdued as intended.

“That gives aspiring first-time buyers an autumn opportunity to negotiate a favourable deal. The story at this time of year for the last five years has been an average autumn bounce of 1.6% in the price of property coming to market. While the backdrop of political uncertainty and stretched buyer affordability remains the same, this month has price drops at the bottom of the market dragging down the national average.”

Muted annual figures

The annual rate of increase fell to 0.9% in October, the lowest annual rate since February 2012.

Robert Lazarus, MD of sales at Paramount Properties in London, said: “There’s a better opportunity for first-time buyers coming in to the market at the minute compared to a couple of years ago, especially if they’re looking for a one bed flat.

“Before the additional stamp duty on second homes came in we were selling 20% of these flats to landlords which was driving prices up, and now we’re selling less than 5% of them to landlords, giving first-time buyers the first pick of new stock that comes on.”