UK house prices fall for first time this year as market slows in summer: report

UK house prices fell for the first time in 2022 mainly due to seasonal factors rather than broader economic conditions, according to the property website.

According to Rightmove’s website, the average asking price of UK properties fell 1.3% month-on-month in cash, or £4,795 ($5,680), to £365,173 ($432,613) in August.

However, the decline may be due to the usual seasonal lull rather than broader economic factors such as rising interest rates, the website said.

Prices typically fall in August, according to the report, and the 1.3% decline is in line with the average decline seen in that month over the past decade.

Rightmove Property Science Director Tim Bannister said: holiday.

“Sellers who want or need to move quickly this time of year tend to price competitively in order to find the right buyer early, so they can have time to enjoy Christmas in their new home. Some people want to complete their move like this,” he added.

temporary calmness

Bannister expects this to be only a short-term lull and prices will rise again in the near future.

“finish [the] Annual growth is about 7% despite broader economic uncertainty,” he said.

Despite rising home prices and higher interest rates, property demand in the typical first-time buyer sector is 32% higher than it was so far in 2019, Rightmove said.

“The impact of higher interest rates is likely to trickle down over the course of the year, but current data suggests it’s not having a significant impact on the number of people wanting to move,” Bannister said.

The Royal Institute of Chartered Surveyors (RICS) said inventory shortages continue to put upward pressure on house prices, even as buyer demand in the housing market is contracting.

The latest survey results show that house prices will be higher within the next year than they are today, it said.

Despite economic uncertainty, RICS senior economist Tarrant Parsons said, “Limited available supply is still seen as a key factor supporting the market.” I’m here.

Last week, the National House Building Council (NHBC) said UK housing construction was firmly back to pre-pandemic levels.

NHBC CEO Steve Wood said his organization has not seen evidence that the cost of living crisis or recession risks are affecting consumer demand.

PA Media contributed to this report.

Alexander Chan