Record Number of Homes Go Unsold

Property website Rightmove reports that the average asking price for homes has fallen by almost £4,000 as the number of unsold properties on estate agents’ books reaches a new record. Is this a sign that sellers are willing to give ground?

Sellers are feeling the pressure as buyers struggle to secure mortgages or are simply staying put as house prices and the UK’s economic recovery remain on uncertain ground.

Property website Rightmove, which collects data for estate agents, has reported that the average asking price for homes fell £3,797 (or 1.6%) to £236,597 in July.

The number of unsold properties on estate agents books also rose to a new record average of 78 as around 70% of the properties put on the market this year have failed to find a buyer.

With mortgage approvals running at around half what they were before the financial crisis and increased fees adding a new deterrent, buyers are fewer and more cautious.

Rightmove warned that the problem facing sellers is that many may not have enough equity in their home to lower prices any more without losing money on the sale – effectively trapping them in their current properties.

According to Rightmove’s index, asking prices for homes are 0.1% higher than a year ago, but are 14% lower than they would be if they had increased at the same rate as the Retail Prices Index (RPI) measure of inflation over the last four years.

Moneyhighstreet comments: “If you’re a prospective buyer, this is good news. It’s a sign that buyers can aim slightly above their budgets in the hope of negotiating a better deal as sellers struggle to sell their properties.

“Although the mortgage market is tougher, competition is growing and more mortgages are being made available for first-time buyers. Buyers can also take advantage of low interest rates to fix their mortgages and save money over the long term.”