Figures released by Rightmove show that the average price of a property in the UK fell to £365,173 in August, down 1.3% or £4,795. While there are concerns that the rise in interest rates – raised in response to rising inflation – could weigh on the housing market, Rightmove said the fall was broadly in line with summer price trends over the past decade and is likely to recover just as house hunters were returning from holidays, which for many were their first since the lifting of Covid restrictions. “A fall in asking prices is expected this month as the market returns to normal seasonal patterns after a two-year frenzy, and many would-be home movers are distracted by the summer holidays,” said Tim Bannister, director of Rightmove. House price chart Rightmove said sellers who need to move quickly tend to drop their prices to ensure they can close offers and move in by Christmas. This is partly because the average time to accept and close a sale is now about four and a half months. While several mortgage lenders, including Barclays, believe interest rates could rise to 2.5% by the end of the year, resulting in higher costs for borrowers, these pressures are expected to slow the pace of house price growth instead of reversing him. Lloyds Banking Group, which owns Halifax and is the country’s biggest mortgage lender, said last month that while it braced for a slowdown in house price and mortgage growth, its own lending rate was still likely to increase by single digits over the next 12-18 months. Rightmove said it still expects UK house prices to end the year 7% higher than in 2021, despite wider economic uncertainty and fears that rising food and fuel prices could drive the UK into recession later this year. The real estate website said that a lack of supply will continue to boost prices as the level of available inventory is down 39% compared to 2019. Although buyer inquiries are down 4% compared to 2021, they are still are 20% higher than before the Covid outbreak. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk “It is likely that the impact of the rate rises will gradually pass through the rest of the year, but at the moment the data shows that they are not having a significant impact on the number of people wanting to move,” Bannister said. “Demand has eased a notch and there is now more choice for buyers, but the two remain at odds and the size of that imbalance will prevent significant price falls this year.” He said would-be homebuyers worried about rising interest rates should first secure a mortgage early to understand what they can afford, confirm available interest rates and assess what they’ll be able to repay each month. . Rightmove has confirmed that the average monthly mortgage payment for a first-time buyer with a 10% deposit has topped £1,000 for the first time this month.
