Average UK new seller asking prices fell by a larger-than-expected 1.9% to £355,177 in December, data from Rightmove shows.
Prices usually ease this month due to seasonal factors, but December’s drop, of almost £7,000, is bigger than the 20-year average of 1.5% “as sellers get more competitive,” says the property platform’s latest monthly house price index.
Overall, the firm points out that the housing market in 2023 “was more resilient than many predicted as it continued its slow transition from frenzy to more normality”.
New seller average asking prices end the year 1.1% below a year ago, although sales agreed for the year to date are 13% lower than the same period “in the more frenetic” 2022 market.
Prices in seven out of 11 regions are higher than a year ago. The North West leads the way, up by 1.5% compared to last year, while the South East is the worst performer at 3.7% below 2022.
Over the coming year, the firm predicts that UK new seller asking prices will fall by an average of 1% in 2024, “with motivated sellers still needing to price below their local competition to secure a sale, as buyer affordability remains stretched”.
Rightmove director of property science Tim Bannister says: “Higher mortgage rates have been a key challenge for movers this year, and affordability remains stretched.
“However, with improved market stability as we head into 2024, there are signs of greater activity from family movers who had put their plans on hold during the fallout from the mini-Budget.”
MT Finance director of property lender Tomer Aboody adds: “Market activity has been at a lower level than last year, with a reduced number of property transactions as interest rates continued to rise and buyers found it difficult to budget.
“With many buyers sitting on their hands and waiting for the right opportunities to come along, sellers who are keen to sell have had to reduce their pricing in many instances.
“This trend will likely continue into the new year, although at a lower level potentially as mortgage rates become more affordable and we see an increase in the number of buyers, who will once again find themselves in competition.”
