Asking prices for UK properties have fallen by 0.6% in November in a pre-festive price lull which is expected to last until Christmas.
This is according to the latest data from Rightmove which said this dip in prices – which amounts to £2,044 – offered a ‘small window of opportunity’ for bargain hunters before the traditional Boxing Day buyer boom.
Indeed, the number of people who browse properties on Rightmove during the post-Christmas Day festive period has been rising every year. The property website reported visits were 54% higher than the previous year in Boxing Day 2020.
Rightmove advised anyone keen to take advantage of lower prices to secure a fixed-rate mortgage before the widely anticipated interest rate rise.
Tim Bannister, Rightmove’s director of Property Data data, said: “Despite the soaring property market and consequent shortage of choice of homes for sale for prospective buyers, new sellers have given buyers an early Christmas present by dropping their average asking prices by 0.6%.”
He explained how sellers who come to market this close to the distractions of Christmas often have a pressing reason to sell, so they offer more attractive prices to grab the attention of prospective buyers who may be otherwise occupied.
He warned the downward price trend would likely be relatively short-lived, as the post-Christmas boom may push prices higher again, and increase the competition from other buyers.
“Some of those additional buyers will also be new sellers who have held back from launching their property to market until this Boxing Day buyer boom, judging it to be a good time to sell and to move in 2022,” he added.
A good time to get a mortgage
This period of house price deflation coincides with record low mortgage rates too. And while experts are predicting a rise in rates are imminent, it would appear there is also a window of time to enjoy these low rates.
Ross Counsell, a chartered surveyor and director at GoodMove, said: “Mortgage rates are currently super low, with many lenders offering sub 1% mortgages to buyers, making this a great opportunity for first-time buyers especially to get their foot on the ladder.
“Inflation is also expected to rise above 4% by the end of the year – which will make home loans more expensive, but could slow demand for properties, making house prices decrease even further. So, it really could be a great time to buy a home.”
