The property market is enjoying its strongest August since the financial crisis with a far lower seasonal fall in prices than usual.
Prices fell just 0.8% month-on-month, equivalent to a drop of £2,258, compared to an average drop of 1.5% over the past eight years, according to new figures from Rightmove published today.
This is the least generous August price discount from sellers since 2007 and is largely down to an 8% year-on-year drop in the number of new sellers, which has supported prices.
The research shows that sellers are putting their property on the market either because they can't find anywhere they want to buy, the high cost of moving, or because they cannot find a property they can afford.
Righmove director Miles Shipside said: “While new seller asking prices have been muted by the traditional summer holiday property slowdown, the underlying shortage of property coming to market compared to buyer demand has helped to deliver the strongest August price performance since before the credit crunch.
“Buyers can normally pick up some bargains in August as sellers who are marketing their homes when they should be holidaying often have a pressing need to sell and mark their prices down pretty aggressively.
“At 0.8% down on the previous month, this is the least generous that sellers have had to be for eight years and a clear sign of upwards price pressure in the pipeline.”
The shortfall of solace has been aggravated by the lack of new-build supply and resulting shortage of housing stock.
Shipside said: “The shortage of suitable property being built exacerbates the vicious circle of not enough property on the market to meet demand, increasing prices, and a reluctance among home-owners to come to market if they think the prospects of finding and funding their next move are severely compromised.
“If there’s very little up for sale it can often put off would-be sellers from deciding to market their own property.”