Half of agents say average selling prices are no longer coming in above asking prices for properties worth up to £500,000. Sellers with properties costing £1 million or more are having to accept lower offers.
Only 39% say average sales prices of properties £500,000-£1 million are over asking price. House prices are still rising, but more slowly.
RICS has released its Residential Market Survey for June: UK Residential Market Survey (rics.org)
Sarah Coles, senior personal finance analyst, Hargreaves Lansdown said: “Bidding wars are increasingly giving way to more cheeky offers, particularly on pricier properties. Half of agents say that properties under £500,000 are no longer selling for more than the asking price, while those priced at more than £1 million are being forced to accept lower offers. It’s another sign that the property market is starting to turn.
“Sales are also falling, and agents expect them to keep dropping in the coming months. Meanwhile, after such a long time of ever-increasing buyer numbers, we’ve seen a second month where fewer buyers are on the hunt for a home. House prices are still rising, because buyers still vastly outstrip sellers, but they’re starting to ease a little.
“Plenty of agents are feeling the impact of less demand. Others are highlighting that even when people decide to buy, life continues to get harder, so more sales are falling through as they worry about job security and rising prices. Some agents say that agreed prices are being renegotiated.
“However, it’s still a very mixed picture, and some agents say it’s as busy as it has ever been, and some buyers are in a hurry to snap up a property before mortgages get even more expensive.
“The rental market remains horrible. The number of tenants is up again, including would-be first-time-buyers who are worried about the cost of living, and have decided to rent again instead. Meanwhile, the number of landlords has dropped for the third month in a row. Some are warning that legislative changes are driving more landlords out of the market, so with nobody filling the gap, shortages are getting even worse. It means that agents aren’t expecting any let-up in rising rents.”