Sellers dropped their asking prices by 2.6% between October and November although house prices remain 2% higher on an annual basis. The 2.6% fall, equivalent to an average of £6,407, represents the smallest November decline in three years, according to the latest Rightmove house price index. The average asking price of a house now stands at £236,761.
When measured on an annual basis, prices are 2% or £4,617 higher this month, the largest annual rate of increase for November since 2007. Prices are still 0.2% higher even after properties in Greater London are removed from the calculations. Prices in London have risen 8.8% over the course of the year. The Greater London area is the only region of England and Wales where prices rose compared with the previous month, by 1.2%.
Rightmove director and housing market analyst Miles Shipside says there is evidence that more first-time buyers are starting to enter the housing market based on property type sales. He says: “Terraces and flats have increased in price year-on-year more than any other property type. With bottom-end activity a key driver for the rest of the market, this is an indicator of increased activity amongst investors and first-time buyers. In addition, our survey found that 78% of 2013’s intending first-time buyers stated that they have a 10% or greater deposit lined up, suggesting they have adjusted to the new market norms of higher equity requirements.”
The average asking price of a terraced house rose 4.4% on an annual basis to reach £181,633 in November. The price of a flat in England and Wales rose 4.3% over the same period to reach £201,735.