Asking prices see biggest drop in the month of November since 2012

Asking prices in Britain have fallen by 1.7% this month, the largest November drop since 2012, as sellers lowered their expectations, the latest Rightmove index shows.

Year on year asking prices are now 0.2% below where they were last year at £302,023, the first annual fall for seven years, the data also shows.

All regions recorded a monthly price fall, with the largest falls in the south and the upper end of the market with wealthier commuter towns around London, where prices have risen by over 40% since 2011, seeing significant price falls.

But Miles Shipside, Rightmove’s housing market analyst, pointed out that it is encouraging that sales have increased by 1% year on year.

Miles Shipside said:

‘New sellers and their agents are reacting to market forces and lowering their pricing aspirations by more and sooner than usual.

‘Stretched buyer affordability and the cooling markets in the south and in upper price brackets have combined with the ongoing political uncertainty to change pricing optimism into pricing realism.’

A breakdown of the figures show that the biggest monthly fall was 2.4% in Yorkshire and the Humber to an average of £186,935 but up 1.7% year on year. This was followed by a fall of 2.1% in the South East while in London asking prices fell by 1.7%.

Shipside explained:

‘Seven years ago price rises started rippling out from the capital into the commuter belt in the South East. That ripple effect has now been reversed, with some of the London market price re-adjustment reverberating out into the commuter belt.’

Among commuter towns the biggest decline was a fall of 7.1% in Rickmansworth, followed by a fall of 6.4% in Esher and a fall of 6% in Gerrards Cross.

In Scotland asking prices fell by 1.3% month on month to an average of £151,209 but are 2.3% above a year ago while in Wales they fell by 1.6% month on month to £192,441 but are still up 4.4% year on year.

Asking price falls are much less in the North of England, down by 0.6% month on month in the North East to £148,672 and by the same in the North West to £192,510. Year on years prices are up 3.5% and 3.2% respectively.

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