According to the Rightmove House Price Index results, UK property prices increased by 2 pct in February, the smallest price rise at this time of year since February 2009. Annual rate of increase lowest since April 2013 at +2.3%, though overall demand remains strong.

Miles Shipside, Rightmove director and housing market analyst comments: “While the prices of goods in shops are rising at a faster rate, the pace of price rises in property coming to the market is slowing. They’re still 2.3% higher than a year ago, but perhaps we’re approaching the territory where many buyers are unable or unwilling to pay what sellers are asking, given the negative combination of rises in the cost of living, tighter lending criteria, and a dose of Brexit uncertainty. The housing market has had a long sprint since April 2013 when the annual rate was last below this level, so it’s not surprising that upwards price pressure is running on tired legs with average prices today being 23% or nearly £60,000 higher than they were then. This surge in the cost of home-ownership highlights some of the issues referred to in the government’s recent White Paper on fixing the broken housing market.”

Kevin Shaw, national sales director at estate agency Leaders, says: “Tempting as it may be, it’s never in the interests of a seller to set an asking price above what a property is really worth. Setting an accurate price, based on local market conditions, is crucial for achieving both a quick sale and the best possible price. Overpricing, particularly in a price-sensitive market, will result in the property sitting on the market until the price is dropped, losing the interest of buyers and ultimately achieving a lower price in the end. With demand as high as it is and the current lack of supply, we know that an accurately priced property will sell within the first few weeks of coming onto the market, provided it is well-presented and marketed correctly. Sellers need to be more aware of the risks of over-pricing and choose an agent that will give them a reliable, honest valuation to help them achieve the best price for their home.”

James Sims, Director at Brik Estate Agents in Fulham said: “The sales market in Fulham is currently very price sensitive. We’re noticing that reducing properties by even a marginal 2-3% can make a significant difference to the level of interest from potential buyers. As is usual at this time of year we’ve had more sellers of properties in higher priced brackets come to market, and so we’ve been working with them to make sure their property is marketed at the right price.”

Source: Rightmove