Rightmove, a property tracking website, recently announced that asking price for a UK house on average dropped to 0.8% on August with a price tag range of £292, 284. This came after a slight 0.1% increase in July. This bit was reported by lse.co.uk. And according to the same post, regional asking prices were up 0.2% in Wales, 1.2% down in the South East and Eastern parts of England. There were also the same effects in London down by 1.3% while in the East Midlands and South West they are down 1.4%. Yorkshire and the Humber remain flat.
Summer time usually sees a dip in property market price but this time there is no obvious impact to market movement. In a post in propertywire.com, it was revealed that there are three factors being looked at by pundits why people are not looking to buy houses. First, they can't find the right location. Then there is the high cost of transferring and lastly, not too many can afford to buy new properties.
Rightmove director and housing market analyst Miles Shipside said in an interview, "While new seller asking prices have been muted by the traditional summer holiday property slowdown, the underlying shortage of property coming to market compared to buyer demand has helped to deliver the strongest August price performance since before the credit crunch." With lack of new homes being built, there is clearly an imbalance in the demand and supply chain which the seasonal drop in prices failed to remedy.
Shipside also adds that the shortage of high quality property being built worsens the vicious circle of not having enough property on the market to attract buyers, inflating prices, and reluctant home-owners are doubtful to come to market if they think the prospects of finding and funding their next move are severely compromised,' he said.
