Olympics cause sellers to drop their property prices

Posted: 20/08/2012

Property prices were slashed by the largest percentage ever recorded in August during the Olympics according to Rightmove, the property search website.

People selling their homes dropped their asking prices by an average of 2.3% month on month compared to a typical fall of 1.1% which has been recorded in August over the past 10 years. The best performing region was the North West of England where prices stayed around £163,002 even though this region recorded the highest percentage of repossessions only a few months ago.

Rightmove experienced a 50% drop in traffic to its website during the main events of the Olympics where house hunters became engrossed in sporting events as well as the opening and closing ceremonies. According to Rightmove's website, there was no region across England and Wales that recorded a month on month asking price rise which is the first time this has failed to happen since November 2011.

The region that experienced the steepest drop in house prices was the South East of England with a 4.2% fall on their month on month house prices to an average price of £302,628. Even London suffered during the Olympics where a 1.2% drop in house prices on a monthly basis was recorded even with the strong interest from overseas buyers. London’s average house price currently stands at £454,875 in comparison, Wales average house price is £162,736. Wales experienced the largest year on year drop with a total fall of 5.2% and a month on month drop of 2.6%.

The good news is house prices are 2% higher than they were this time in 2011 across England and Wales. However, Britain will not be winning any medals in the house building Olympics as there has been a mere 21,540 new homes built over the second quarter of 2012. According to the Royal Institution of Chartered Surveyors, the amount of house building had dropped to the lowest figure in almost a century.

This is bad news when the population of England and Wales has risen by 3.7 million in the past decade according to the figures from the latest census. This is the largest population rise since national records began back in 1801. The housing crisis is being blamed on finance because home buyers simply can not afford the ever increasing deposits required, especially first time buyers. This then forces many families into renting which has created the largest rise in private rent to an average of £725 per month.

It seems like the housing market is slowly but surly spiralling out of control and the only answer the experts can come up with is to build more homes. What do you think should be done to help the housing market recover and become more stable?

(0) Comments sellers, first time buyers, buyers, property, housing, Olympics

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