Asking prices for new homes fall by £12k in two months, according to Rightmove

Asking prices for new homes have fallen by almost £12,000 in the past two months, according to data from Rightmove.

Asking prices fell for a second straight month in December, from £366,592 to £360,197, a decrease of 1.7 per cent.

This follows on from the previous month, which saw average asking prices fall by £5,366 between October and November which equates to a decrease of 1.4 per cent.

This means that over the past two months, the asking price has fallen by £11,761.

While this may seem like a big fall, it is in line with seasonal trends in the run-up to Christmas, according to Rightmove.

This is because consumers tend to hold on to their plans until the new year and consumers’ spending power decreases as Christmas approaches.

However, despite the holiday frenzy, activity is stronger than it was a year ago, according to the real estate portal.

The number of sales approved has reportedly increased by 22 percent, and new customer inquiries have increased by 13 percent.

Tim Bannister, property expert at Rightmove said: ‘New buyers will have to do their best in December to capture the attention of struggling Christmas and festive buyers, with an average monthly drop of 1.7 per cent. It’s a perfect gift for those who are still shopping at home.

‘Despite this month-on-month drop, prices have increased compared to this time in 2023, which is in line with our forecast of a 1 per cent increase in prices this year.’

There is also evidence that some buyers are trying to beat the stamp duty deadline of March 31, and buyers are reacting to this by choosing to go to the market now. .

Buyers of low-cost properties in high-priced areas are trying to trade or simply sell before the deadline to avoid the highs. stamp dutyalthough it must be done quickly now.

This is because the threshold at which home owners start paying tax is being lowered from £250,000 to £125,000, meaning that anyone buying a house for more than £125,000 will pay up to £2,500 for stamp duty.

Prices are also improving in the first-buy category, particularly homes under the £300,000 threshold.

In the past four weeks, the number of buyers of first-time buyers and one- and two-bedroom properties in London coming on the market has increased by 20 per cent, according to Rightmove. most regional market segments.

In second place is the South East where one and two bedroom homes coming onto the market are up 16 percent, making it the second most expensive region.

The price at which stamp duty will start to be charged on first-time customer sales will be back to £300,000, from its current level of £425,000.

Mo primary consumersthis means they will not pay stamp duty on a sale worth £425,000, they will soon pay £6,205.

Prices will increase for one first time buyers to buy property price between £425,000 and £625,000.

A first-time buyer buying a home worth £625,000 currently pays £10,000 in stamp duty. But from April 1, that will rise to £21,250 – an increase of £11,250.

Interestingly, prices for first-time buyers are still strong in higher-income areas, where the impact of stamp duty changes will be less, as most first-time buyers are under £300,000 tax return. tray

Prices for first-time home buyers in the Northeast rose by 1 percent this month, in stark contrast to this month’s 1.7 percent decline for all property types.

Need to take advantage of Boxing Day?

Last year, Boxing Day saw many new vendors hit the market for that time of year, providing new assets for buyers.

Meanwhile, customer inquiries increased by 273 per cent between Christmas Day and Boxing Day.

Rightmove’s Tim Bannister expects a similar story this year.

‘We are looking forward to Rightmove’s traditional Boxing Day in the house-moving industry, which has become a key day in the housing market calendar,’ he said.

‘Each year, our real-time data can predict the exact moment when the wrinkles stop, the family games run out of steam, the mobile devices are picked up and the movers flock to Rightmove and start moving. 2025.

‘If this year is anything like recent years, early birds looking for a day after the events end will be presented with a number of new property options to consider.’

Steven Holden, managing director of Holden Copley estate agents in Nottingham said: ‘Of course, the month of December tends to be the lowest of the year in new listings as most turn to events.

‘However, we expect an increase in activity after Christmas and the start of the new year, with Boxing Day as the start of a busy period.

‘Getting a valuation now or in early January will help real estate agents get in touch with buyers looking for the right property at the right price.’