More choice for homebuyers slows house price growth

With the traditionally busy autumn property market approaching, annual house price growth is steady at 1.3%, but the market remains firmly in buyers’ hands, with homes that are priced too high taking more than twice as long to sell as those that don’t require a price reduction.

This month’s figures from property search giant Zoopla, which tracks changes in sold prices achieved, are similar to where they were a month ago, when annual price growth also stood at 1.3%. Sales agreed are up 5% on last year, but buyers have more choice with stock levels 10% higher than 12 months ago. This means the UK’s average property now costs £270,600, up £3,560 year on year.

However, Yorkshire is one part of the country that has seen stronger price growth, with Zoopla’s figures showing a 2% increase over the past year.

Zoopla’s data also reveals that properties that require price reductions take 2.4 times longer to sell than those that don’t, which makes accurate pricing the key to securing a sale this autumn.

Nick Talbot is head of residential at North Yorkshire based rural property consultancy, Lister Haigh. He said: “More homes for sale means price growth has been muted this year and buyers are being very selective when it comes to choosing their next home. Therefore, sellers that are too optimistic on price will struggle to sell and will have to wait a lot longer to find a buyer, compared to those that are priced accurately from the outset.

“This makes working with an experienced local estate agent, who knows the area well and understands the market feeling, more important than ever in the current market. This is especially true as we head into autumn, which is traditionally a busy time for the housing market, as people return from holiday and often set their sights on moving before Christmas.

“Sellers with realistic expectations can definitely secure a sale in the current market, which has been boosted by the latest cut to interest rates, which is helping to create stable mortgage rates. In addition, the fact that wage inflation is outperforming house price growth is helping affordability.”

Zoopla’s executive director, Richard Donnell, said: “There is plenty of demand for homes and more people are looking to move. However, buyers also have much greater choice to choose from, especially across areas of southern England. There is a clear link between buyer choice and price inflation and how long it is taking homes to sell.

“Sellers need to understand local market conditions when considering how to market their home, setting the right price and how quickly they would like to sell.”

Earlier this year, Lister Haigh was acquired by Dacre, Son & Hartley which has a 200-year heritage and offers a comprehensive range of services from its 18 offices spanning residential sales and lettings, agricultural management, planning, and commercial investment advice. Founded in 1919, Lister Haigh has long been synonymous with Yorkshire’s rural property market.