Rightmove: strongest August property market since the credit crunch
Smaller than usual asking price fall in August.
The continued imbalance between supply and demand in the housing market has led to a 'muted' asking price fall, according to Rightmove.
Asking prices dropped just 0.8% (-£2,258) in August, compared to a post-2007 average of 1.5% for this time of year.
As a result Rightmove has declared this the "strongest August market since the credit crunch".
Here is how the monthly change in asking prices in August have looked dating back to 2007:
| Year | August monthly change in asking prices |
| 2007 | 0.6% |
| 2008 | -2.3% |
| 2009 | -2.2% |
| 2010 | -1.3% |
| 2011 | -1.1% |
| 2012 | -0.9% |
| 2013 | -1.1% |
| 2014 | -2% |
| 2015 | -0.8% |
Source: Rightmove
New seller shortage
The imbalance between supply and demand in the property market shows no sign of ending.
The number of new properties coming to market compared to the same period last year is down by a whopping 8%.
Rightmove blamed the lack of properties built over the last 20 years for this continued imbalance. This follows the Royal Institution of Chartered Surveyors last week warning that the Government's failure to boost supply will only push house prices up further in the years to come.
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Hesitation to move
Concerns around shortage of choice and stretched affordability are still troubling potential buyers.
Rightmove found three key reasons why people who are seriously considering a move have not yet acted:
They can’t find anywhere they want to buy
The most common reason of the three. Homeowners are reluctant to put their own property on the market speculatively, instead waiting until the right property for them becomes available. As a result, high-demand locations are suffering from a ‘property gridlock’.
High cost of moving
Buyers with large deposits benefit from much more competitive interest rates on their mortgages. Rightmove reckons that buyers who don't have such large deposits are being put off by the additional costs of moving they would face. Instead they are staying where they are and improving their current home.
Can’t find an affordable property
A shortage of property for sale in property hotspots is pushing prices higher, making them less affordable for potential buyers. And with lenders tightening up their lending criteria since the Mortgage Market Review, Rightmove believes some wannabe buyers are simply assuming they would not qualify for a mortgage, and so putting a move off.
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More on housing:
RICS: government failing to tackle property drought
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