UK house price slump blamed on surge in sellers
Property prices are being suppressed because of a deluge of homes for sale, according to listings website Rightmove
THE number of homes for sale increased by 8.6 per cent this month compared to same month last year.
The swell in listenings, along with a summer slowdown, is keeping prices at a standstill, said Rightmove.
Finding a buyer could prove harder as prices stay stagnant and competition heats up, the website said in its monthly house price index report.
The number of properties for sale per agent is at its highest level since September 2015.
Sellers will have to compete on price, presentation and promotion of their property in order to catch the eye of buyers.
"While an increase in seller numbers is a welcome sign of more liquidity in a generally stock-starved market, it has unfortunately come at a quieter time of year", said Miles Shipside, Rightmove director and housing market analyst.
How to get help buying a house
THERE are several government schemes available to help you get on the housing ladder.
- Help to Buy loan: This scheme is for those who have a 5 per cent deposit, and is only available on new-build properties that are worth less than £600,000. The government lends you up to 20 per cent of the property value (interest-free for the first five years) which gives you access to cheaper mortgages. You will need to pay this back at the end of the mortgage or when you sell.
- Starter Homes: First-time buyers under the age of 40 can access this new scheme. You’ll get a 20 per cent discount on the market value of the property (new-build only) but you cannot sell or let the property for five years after you buy it.
- Shared ownership: This scheme is available to non-homeowners who earn £80,000 a year or less (£90,000 in London). People can buy a share of a home from a housing association and continue to rent the remainder. Buyers will need a ten per cent deposit as well as money to cover stamp duty and other fees. You’ll also need to find a mortgage lender that is willing to lend on shared ownership properties
For first time buyers, getting on the housing ladder continues to be tough.
First time buyers need almost £50,000 for a deposit on a mortgage, according to the latest figures.
The reduction in stamp duty failed to create an increase in enquires from first time buyers.
In November, the government reduced stamp duty for properties between £300,000 and £500,000 and cancelled it entirely for properties under £300,000.
If you can afford to buy, there is some good news.
Price reductions are at their highest rate since 2011, according to the site.
A third of properties currently on the market that had at least one price reduction since first being listed on Rightmove.
In the capital, property prices continue to fall - with the biggest reductions at the luxury end of the market.
House prices in London are down -1.7 per cent, with -0.5 per cent fall just this month.
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Despite the fall, the average house price in Greater London is a wracking £628,458.
The number of days it takes to sell a property in London remains at 67 days, compared to 56 days nationwide.
Hull is the most affordable city for first time buyers, property website Zoopla found.
Research by the Institute for Public Policy Research has found that freezing property prices for the next five years could prevent another financial crisis.
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