House prices in England and Wales declined by -1.7% in November as sellers compete more fiercely ahead of the quieter winter, says a report issued by Rightmove on Monday. Compared to November 2013, however, prices have increased by 8.5%.
In November 2014, the average price of a private dwelling in the UK stood at £267,127.
Rightmove says the fall in November house asking prices is a sign that the property market has lost its steam.
According to Rightmove analyst Miles Shipside, while underlying demand remains robust, houses have been pricing themselves out of the market.
More stringent lending rules introduced earlier this year have undermined people’s ability to borrow enough to buy the property they seek.
Mr. Shipside said:
“Selling is more difficult than it was earlier in the year, though the mini-boom experienced by much of the country has hit the pause rather than the stop button.”
Source: “House Price Index – November 2014 Edition”, The Rightmove.
So far this year, housing transaction volume has been higher than at any time since 2007. The average stock levels held at real estate agents has fallen to a record low of sixty properties.
In November, there were 15% fewer new properties coming onto the market compared to October, and 1% fewer than in November 2013.
The South West of England saw the steepest decline in asking prices (-3.9%), followed by the North (-3.6%), and the North West (-3.3%).
London, on the other hand, posted a November house price rise of +0.8%. Asking prices in East Anglia increased by +0.7%.
Compared to November last year, house prices in November this year have increased in every region in the country.