Asking price growth slows to lowest rate in almost four years as housing market stalls

By Isabelle Fraser

CREDIT: CHRISTOPHER FURLONG/GETTY IMAGES

The growth in house prices has slowed to the lowest rate in almost four years as sellers were warned against overpricing their properties.

Rightmove’s index of asking price for properties found that the annual rate of growth was just 2.3pc, the lowest since April 2013.

For this time of year, it is the slowest rate of growth since February 2009.

However, it said that demand was up, with traffic to the website 3pc higher than January last year, when it was boosted by the surge of investors to purchase uy-to-let properties before stamp duty was hiked in April.

Rightmove said that the lower rate of house price growth means it is riskier for sellers to overprice their homes. Miles Shipside, director of Rightmove, said: “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.

One in five properties are overvalued, and have been heavily reduced, according to Which? CREDIT: TOBY MELVILLE/PA WIRE

“The housing market has had a long sprint since April 2013 when the annual rate was last below this level, so it’s not surprising that upwards price pressure is running on tired legs with average prices today being 23pc or nearly £60,000 higher than they were then.”

This comes after research from Which? found that one in five properties in England and Wales are overvalued, and have been heavily reduced by more than 5pc from their original asking price.

The housing market is slowing, with fewer transactions expected this year: Adam Challis, head of residential research at JLL, said that there could be 11pc fewer properties sold this year.

The situation is particularly delicate in London, where 28pc of properties were discounted, according to Propcision, an analytics firm.

James Sims, director at Brik Estate Agents in Fulham said: “The sales market in Fulham is currently very price sensitive. We’re noticing that reducing properties by even a marginal 2-3pc can make a significant difference to the level of interest from potential buyers.”

http://www.telegraph.co.uk/property/house-prices/asking-price-growth-slows-lowest-rate-almost-four-years-housing/