DECEMBER SEES A ￡7,000 DROP IN AVERAGE ASKING PRICE FOR HOMES IN THE UK

In December, the average asking price for a UK home experienced a significant decrease of nearly ￡7,000, reflecting increased seller competitiveness in their efforts to attract buyers. According to property portal Rightmove, the average new seller's asking price dropped by 1.9% month-on-month to ￡355,177, marking a ￡6,966 decrease compared to November.

?While price declines are customary in December due to seasonal factors, this month's reduction is more substantial than the average 1.5% decrease observed over the past two decades. Contrary to expectations of a steeper decline in prices for 2023, Rightmove reported that, on an annual basis, new seller average asking prices are merely 1.1% lower than a year ago. Looking ahead, the property market is anticipated to witness further price decreases in 2024.

Tim Bannister, the Director of Property Science Innovation at Rightmove, acknowledged that the persistent challenge of high mortgage rates, contributing to an already strained buyer affordability, has been prevalent throughout 2023 and is likely to extend into the next year. Despite this, there is a current sense of calm and certainty heading into 2024, with the annual 1.1% decline in asking prices reflecting the market's unexpected resilience this year.

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