U.K. Housing Loses Momentum With Second Drop in Asking Prices
U.K. Housing Loses Momentum With Second Drop in Asking Prices
(Bloomberg) -- Asking prices for homes on sale in the U.K. fell for a second month in December, indicating the property market lost momentum at the end of a strong year.
The price of property coming to the market fell by 0.7% this month, Rightmove said Monday. That’s the biggest decline since January and followed a 0.6% drop in November.
While the end of the year is traditionally a weaker period for property purchasers, the decline only took some of the shine off of the annual gains. Prices rose 6.3% in 2021 to reach an average of 340,167 pounds ($451,000).
The rise in prices has been accompanied by a jump in transactions. Those were fueled by consumer demands for more space to work from home after pandemic lockdowns and a now-expired government tax break on purchases.
Sales during the first 10 months of the year have already surpassed the annual total for any year since before the financial crisis in 2007, Rightmove said.
While the supply of property on the market is currently at a record low, the website expects a 5% gain in a “more normal market” in 2022.
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