Rightmove reports largest monthly drop in property asking prices ever

Mortgages and Home

15 December 2014 | 5 Comments

Asking prices down by almost £9,000 since November.

Asking prices are down by almost £9,000 over the last month, according to Rightmove, the biggest monthly drop (when measured in pounds) ever.

Rightmove points out that a fall in December is expected, though the scale is another sign of the slowing pace of house price growth across the country. The average asking price now stands at £258,424, compared to £267,127 in November.

Miles Shipside, director and housing market analyst at Rightmove, suggested the falling asking price may also be a sales ploy. He explained: "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."

Despite the fall, asking prices are still up by 7% over 2014 as a whole. 

What 2015 has in store

Rightmove predicts that asking prices will rise next year by 4-5% with the South East seeing the highest growth. The London 'ripple effect' is causing a rise in the South East and South West, which generally perform better than northern regions.

Meanwhile, sectors of London will continue to re-adjust. Affordability has already been pushed to the limit in some areas, with a mixed reaction to the Stamp Duty changes.

The possibility of a mansion tax on properties over £2 million will also be a deterrent until the next general election at least.

Get in there early

Rightmove reckons that early 2015 could present the best time to buy. It argues that the new pensions freedoms which come into play in April may encourage more buy-to-let investment, which will push up prices, particularly for first-time buyers. Moving early means you could get properties that are currently on the market but priced lower than they should be because of the old Stamp Duty thresholds. 

Compare mortgages with lovemoney.com

More on housing:

The nation’s most expensive streets

Stamp duty explained

New rights on the way for leaseholders

Halifax: house price growth still cooling

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