Sellers flee market as asking price falls

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by Kay Murchie

According to Rightmove, the property website, home sellers are disappearing from the property market after the organisation reported a further 1% fall in the average asking price in September.

While the fall in the average asking price for September is less than the 2.3% fall reported in August, it is the fourth consecutive monthly fall and is 3.3% lower compared with the same time last year, or £14,204.

As a result of the falls, prospective sellers are also discouraged from putting their home up for sale, particularly after the recent turmoil in the financial markets, which is expected to have an even bigger impact on mortgages as lenders respond to the chaos.

Miles Shipside of Rightmove said we are now experiencing the lowest level of new sellers for years.

Meanwhile Liam Bailey of estate agents, Knight Frank, is forecasting an atmosphere of further uncertainty and no recovery before spring 2009.

The research from Rightmove suggests that the recent changes to stamp duty has had little or no affect on the housing market.

The organisation’s research also finds that estate agents have, on average, 78 properties for sale, compared with 79 in August, the first decline in seven months.

Meanwhile, research from Your Move estate agents discovered that demand for rental property has increased 65% in the last year, primarily due to the mortgage squeeze.

The latest data from the Council of Mortgage Lenders show a 36% decline in mortgage lending in the 12 months.