House Prices Standstill, according to Rightmove
The latest Rightmove survey suggests that the introduction of HIPs for 3 bedroom houses distorted the housing market in October and masked a standstill in prices.On a quarterly basis house price inflation slowed from 1.5% to 0.5%, the lowest quarterly rise since winter 2005.
The tougher market conditions also mean that houses are taking longer to sell, with the average time on market the longest for 5 years.
These figures were distorted by a 65% jump in the weekly average of 3 bed homes, due to the introduction of HIPs. This led to 'wild' fluctuations in supply and average asking prices, which rose 2.7%.
According to Rightmove, the only way for buyer affordability to improve is for sellers to reduce asking prices, a considerable change of mindset from the past 10 years: "Sellers who need a quick sale will have to respond by pricing competitively."
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