The asking price for houses in England and Wales is increasing more slowly, as figures from Rightmove showed the annual rate of growth was 2.3 per cent in February, down from 3.2 per cent in January.
This was the lowest rate of asking price growth since April 2013, and the smallest growth for February since 2009. The current average asking price for a home in England and Wales is now £306,213, substantially higher than the £220,000 average UK home value stated in the Office for National Statistics (ONS) index last Tuesday.
Sellers are being reminded not to overprice their homes, sticking instead to their true value, to avoid running into problems.
Miles Shipside, director of Rightmove, said: “Perhaps we’re approaching the territory where many buyers are unable or unwilling to pay what sellers are asking, given the negative combination of rises in the cost of living, tighter lending criteria, and a dose of Brexit uncertainty.
“With the annual rate of price increase now at 2.3 per cent, a property that is overpriced by more than five per cent will have to wait more than two years for the market to catch up with it.
“Overpricing loses you that vital initial interest and impetus, and buyers often have reservations about a property that has not sold as quickly as others or has had a price reduction.”
However, while there has been a slowdown in asking price growth, Rightmove revealed that demand has risen. Compared to January 2016, there was 3 per cent more traffic to their website last month, with more than 131m visits to the Rightmove website.
