This year has ended with the largest ever monthly fall in property prices coming on the market - down by nearly £9,000 - but Rightmove has still forecast that the price of property coming to market will rise next year by between 4 to 5 per cent.
Property prices coming to market dropped by an average of £8,703 month-on-month, with a 3.3 per cent fall in new seller asking prices reducing the annual rate of increase from 8.5 per cent in November to give a year end figure of 7 per cent.
The figures indicate slowing growth, according to Rightmove, although it pointed out that the recovery remains on track, with all regions recording positive price growth for the year.
This prediction is based on a shortage of property for sale in popular locations as stricter lending criteria, pre-election jitters and limited choice of trade-up properties dissuade some homeowners from coming to market.
The estate agent also pointed out that buyer sentiment will be aided by continued low interest rates and boosted by stamp duty reform, with early 2015 opportunities for buyers from properties falsely priced below former stamp duty thresholds.
Miles Shipside, the estate agent’s director and housing market analyst, commented: “Whilst a near £9,000 drop is the biggest ever reduction in the price of newly marketed property compared to the month before and a sign of a market continuing to cool, a fall is not unexpected in December.
“The overall picture for the year is still one of a much recovered property market, with sellers and their estate agents confident enough to be putting property on the market at a higher price on average than a year ago, although we predict a slower pace of price growth in 2015.”
Perhaps unsurprisingly, Rightmove predicted the south east will see the highest growth in prices next year, as the London ripple effect continues and stock shortages remain acute.
Andrew Dickinson, managing director of Oakwood Homes in East Kent, explained that there is a serious shortage of stock in commuter hub Kent and demand is still strong going into 2015.
“Over the past six months half of our sales have come from London buyers, including investors and people relocating from the capital.
“I think prices will remain pretty static next year and the best chance for buyers will be in the first part of the year, especially for those that can take advantage of the stamp duty reform, and get in ahead of any changes that the May election could bring.”
peter.walker@ft.com
