According to a recent report, the growth in house prices has fallen to its lowest rate since 2013 due to warnings against overpricing.
Rightmove’s index of asking price for properties indicated that over the month to 11 February, prices sought by sellers had only increased by 2% from the previous month. For this time of year – where a seasonal rise usually occurs – this is the weakest growth since 2009.
Annually speaking, the increase in property asking price was almost as low at just 2.3%; the slowest since 2013.
However, traffic to the online property website had grown by 3% in comparison with January last year, indicating a rise in demand.
Commenting on the figures was Miles Shipside. The director of Rightmove highlighted that the reduced growth of house prices meant greater risks for sellers who price their property too highly.
“We’re approaching the territory where many buyers are unable or unwilling to pay what sellers are asking, given the negative combination of rises in the cost of living, tighter lending criteria, and a dose of Brexit uncertainty.
“The housing market has had a long sprint since April 2013 when the annual rate was last below this level, so it’s not surprising that upwards price pressure is running on tired legs with average prices today being 23pc or nearly £60,000 higher than they were then.”
Research from Which? indicated that a fifth of properties in England and Wales are overvalued, resulting in dramatic price reductions often over 5%.
According to analytics firm Propcision, London’s property market has been affected heavily, with 28% of properties having their prices reduced.
Director at Fulham’s Brik Estate Agents, James Sims commented on the delicacy of the property market in Fulham, stating: “The sales market in Fulham is currently very price sensitive. We’re noticing that reducing properties by even a marginal 2-3pc can make a significant difference to the level of interest from potential buyers.”