Growth in UK new seller asking prices for properties slows in May

(Alliance News) - New seller asking prices for properties in the UK rose to a new record high in May but the pace of growth decelerated, data published by Rightmove showed Monday.

New seller asking prices climbed 0.6% monthly to GBP379,517, which is May's lowest seasonal price increase since 2016. It was much slower growth than 1.4% in April.

On-year price growth slowed to 1.2% in May from 1.3% in April.

Rightmove noted that "the decade-high number of homes for sale limits price growth."

It said that the traditionally strong late spring market is more subdued after a busy first quarter of the year.

Rightmove said: "With new seller activity currently outpacing new buyer activity, sellers are having to work harder to secure a buyer. Rightmove's research on pricing success highlights the unintended result of pricing a property too high at the start of advertising to test the market, only to have to reduce it later. Homes which need a reduction in price during marketing can take over two months longer to find a buyer. Rightmove's data also shows that there has been a 32% increase in the number of sellers who have swapped estate agent to try and find a buyer. This reflects the high market competition, and the frustration of some owners that their homes aren’t selling, a process made much harder by setting an over-optimistic price to begin with."

Rightmove property expert Colleen Babcock said: "Despite April’s dip in new buyer demand, there are early signs of a bounce-back in May. Mortgage interest rates are lower than they were at this time last year, and the recent [central] bank rate cut also gives us some optimism for further mortgage rate drops that will enable more to buy. While we’re not expecting drastic reductions, any lowering of rates will be a boost to buyer sentiment and affordability. With a high number of sellers and a small dip in buyer demand, it’s worth reminding people out there thinking of coming to market that they need to work hard to attract buyer attention. Working with your estate agent to understand your local market and coming to market with a tempting price will give you the best chance of standing out."

By Tom Budszus, Alliance News slot editor

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