Rightmove have revealed property asking prices across the UK have increased by just 0.1% compared to the previous month.
Regions across England and Wales saw asking prices fall month-on-month, with London seeing a 0.5% monthly decrease in asking prices. This suggests house prices may have reached a peak.
This trend follows a dip in June and over the summer months but the fall was below the 0.6% average.
Prices in London are still up 14.5% in comparison with June 2013. The North West region saw the largest month-on-month fall in asking prices, while in Wales prices rose by 0.6% taking the average house price up to £178,776.
The monthly fall in asking prices for the London area were blamed on a combination of growing buyer caution and an increase in new properties for sale. Director of Rightmove, Miles Shipside said while there has been an increase in property supply, estate agents stock levels are ‘well below’ last year. He went on to say a shortage of properties in popular locations is still putting pressure on prices and asking prices were at a “virtual standstill.”
George Osborne announced plans to give the Bank of England new powers enabling them to cap the size of mortgages at a share of the borrowers’ income or the value of their house. The mortgage market review will mean lenders have to scrutinise a borrowers’ income making sure they can still afford their mortgage repayments if interest rates were to rise.
New tougher mortgage rules and a interest rates increase prediction may have put some house buyers off. Are you struggling to keep up with your mortgage repayments or need help consolidating your personal or business loans? Then get in touch with ourselves today.