For the first time this year, house prices have fallen which according to experts, is due to summer distractions rather than deteriorating economic conditions.
Figures released by a popular property search portal has revealed that the average UK property price has dropped to £365,173 in August. This is a 1.3%, or £4,795 decrease.
Many have suggested that the increasing interest rates might unfavourably affect the UK housing market, however it is insisted by the property website that the fall is a direct result of summer trends. It is expected that prices will recover once potential property buyers have returned from their summer holidays.
Sellers tend to drop their prices when they need to move in quickly. This is because the average time to accept and complete a sale is now around four and a half months.
More specifically, the time it takes to agree a sale is currently the quickest it has been since 2016. The number of days it takes for a vendor to accept an offer now stands at 26 days. This is a 42% decrease since 2016 where, on average, it took 45 days to accept an offer.
Not only this but key selling points of properties are helping them sell more rapidly as people are having more specific requirements in a future home.
Other research has discovered the most popular home features which have been listed as key selling points on property portals.
Property listings that mention garden offices is now 11 times higher than a decade ago (1,046% increase).
Coming in at second are bi-fold doors which has increased by a huge 589% compared to 10 years ago. This is followed by orangeries (173%) and underfloor heating (46%).
Despite the average house price decreasing, a number of mortgage lenders are claiming that interest rates could increase to 2.5% by the end of 2022. As a result, borrowers will face higher costs. It is expected that this will slow the pace of house price growth rather than reverse it.
What about the future of UK house prices?
It is forecasted that UK house prices will end the year 7% higher than 2021, even those there is economic uncertainty and fears that rising prices for food and fuel could send the UK into recession later this year.
Tim Bannister, director of the property portal, said: “It’s likely that the impact of interest rate rises will gradually filter through during the rest of the year but right now the data shows that they are not having a significant impact on the number of people wanting to move,”
“Demand has eased a degree and there is now more choice for buyers but the two remain at odds and the size of this imbalance will prevent major price falls this year.”