A shortage of property being put up for sale meant asking prices were unlikely to fall faster than normal for the time of year in the second half of 2022, said Rightmove
Asking prices for British homes advertised for sale this month were 9.3% higher than a year earlier, down from a 9.7% rise in June as mortgage costs rise sharply for first-time buyers, property website Rightmove said on Monday.
Britain’s housing market has been showing some signs of cooling after a more than 20% surge in prices since the start of the pandemic, as the cost of living surges and the Bank of England steadily raises interest rates.
The average monthly mortgage payment for first-time buyers had risen by 20% since the start of the year, reflecting both higher interest rates and the increased price of property – which hit a record 369,968 pounds ($437,561) this month, Rightmove said.
Nonetheless, a shortage of property being put up for sale meant asking prices were unlikely to fall faster than normal for the time of year in the second half of 2022, said Rightmove.
Affordability constraints, a better balance between supply and demand, and usual seasonal price drops will contribute to further slowing of price growth in coming months, with annual growth still on track to be 5% by the end of the year, Rightmove said.
A softening in demand is moving the market from a boil to a simmer, Rightmove director Tim Bannister said.
The report chimes with other surveys suggesting a slowdown may finally be on its way. Demand for mortgages is also dropping as interest rates rise.
Non-seasonally adjusted asking prices for July – which were collected between June 12 and July 9 – were 0.4% up on a month earlier, compared with a 0.3% rise in June.
