House prices record first annual fall in 18 months as sellers face more competition

"UK house prices have fallen year-on-year for the first time since January 2024, as rising stock levels force sellers to compete harder for buyers. The average asking price for a home coming to market this month is £370,257, according to the property portal Rightmove - 0.1 per cent lower than the same point last year. It marks the first annual fall in 18 months and follows months of subdued activity across the market."

"Rightmove said the shift was being driven by a glut of new stock. The number of homes listed on its site has climbed to the highest level in a decade, with the number of transactions being agreed now running 4 per cent higher than last summer. However, the extra supply is beginning to weigh on prices, particularly in the South, where values are highest."

"The South West has recorded a 1.3 per cent annual fall in prices, while the West Midlands slipped into negative territory with a 0.1 per cent decline. By contrast, the North West remains buoyant, with prices up 3.2 per cent on the year. The North East, East Midlands and Yorkshire also reported annual growth, reinforcing a long-standing divide between higher-value southern markets and more affordable northern regions."

Average UK asking prices slipped 0.1% year-on-year to £370,257, the first annual decline in 18 months. New listings have surged, with homes on Rightmove at the highest level in a decade and agreed transactions running 4% higher than last summer. Growing supply is weighing on values, especially in the South where listings are 9% higher and the South West recorded a 1.3% annual price fall. The West Midlands also slipped, while the North West, North East, East Midlands and Yorkshire posted annual growth, highlighting a north–south divide. Speculation about a proposed £500,000-plus sales levy may add regional uncertainty.

Read at Business Matters