Rightmove: Average property price down 0.5%

The average price of a property coming on to the market has fallen by 0.5%, £1,505, between October and November, shows the Rightmove House Price Index.

As a result of the decline, the average property price in the UK in November was noted at £322,025, having fallen from £323,530 in October.

This is despite strong buyer demand as the property market rushes to meet the stamp duty holiday deadline, according to Rightmove.

Nisha Vaidya: Sales and prices at all time high

Meanwhile, on an annual basis, property prices are up 6.3% on November 2019.

Furthermore, national sales agreed and sales going through the buying and selling process are up 50% and 67%, respectively, comparing October 2019 and October 2020.

In addition, in the year to October 2020, there was a 106% uplift in sales agreed, and a drop of 23 days in time to secure a buyer within the £400,000-£500,000 property band.

On a regional basis, the East of England saw the greatest rise in property prices between October 2019 and October 2020, growing by 72%.

Tim Bannister, director of property data at Rightmove, said: “Given the ongoing mini-boom, prices might have been expected to rise again this month, but instead we have a slight dip which could be a result of some new sellers pricing more realistically to have a better chance of agreeing a sale in time to benefit from the stamp duty savings on their onward purchase.

“We know from a recent Rightmove study that sellers are twice as likely to sell if they agree a sale based on the first price at which their property goes on the market, something that’s even more important now as we move towards the end of March and the end of the stamp duty holiday.

“If your initial asking price is too high then you are less likely to get an offer even after you have cut your price back to a more realistic level. Our revised prediction of a 7% annual increase in prices in 2020 looks to be on track, since the annual rate has jumped to 6.3% with a month to go.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Although, of course, only reflecting ‘asking’ not ‘selling’ prices, the Rightmove figures confirm what we have been seeing on the ground for several weeks.

“History is repeating itself. Additional restrictions and the threat of another lockdown have delayed – not halted – property moves as buyers and sellers once again demonstrate their determination to negotiate hard and take maximum advantage of the stamp duty holiday.

“Nearly all are acutely aware that delays in arranging mortgages, valuations and conveyancing will mean meeting the 31 March deadline will not be easy, even if deals are agreed in the next few weeks.

“We have also noticed that the prospect of a vaccine has given an extra boost to viewings this week, even though it is still very early days. But on the other hand, this may make some sellers less likely to accept what they regard as unrealistic offers.”