The annual rate of increase in house prices in February was its lowest since 2013 at 2.3 per cent.
The Rightmove House Price Index found the average asking price was £306,231 – a 2 per cent increase on January.
This was the smallest price rise at this time of year since February 2009.
Miles Shipside, Rightmove director and housing market analyst, said the housing market might be sending a message to sellers who might be over-pricing their properties.
He said: “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 per cent or nearly £60,000 higher than they were then.”
Mr Shipside quoted research which showed sellers were 40 per cent more likely to sell if they priced their property correctly when it first came to market.
Early 2016 was boosted by buy-to-let investors rushing to buy before the introduction of a stamp duty surcharge in April, which had made this year’s figures look subdued.
But Rightmove said demand has been strong, with visits up 3 per cent compared to January 2016.
Jeremy Duncombe, director of the Legal & General Mortgage Club, said: “The housing market has always experienced monthly fluctuations in the price of property, so today’s results from Rightmove are no real shock, particularly as the annual figures continue to show house prices rising over the course of the year.
“After the fanfare surrounding the Housing White Paper, it is reassuring to see the government finally recognise and make plans to tackle the supply and demand crisis that is the root cause of the housing crisis.
“With a programme in place to address housing supply, it’s now time to get on with the job of building thousands of new homes, for all tenures, to create a fairer housing market for the future.”
damian.fantato@ft.com
