Rightmove has revealed a 15% year-on-year slump in the number of vendors which it has blamed on lacklustre price growth, Brexit and the looming General Election.
This is the largest drop of vendor confidence seen since the worst months of the financial crisis in 2009, the portal claims.
Rightmove says the asking prices of newly-listed properties has dropped by 1.3% during November month on month and this, coupled with political uncertainty, has persuaded ‘thousands’ of vendors to postpone their moving plans.
The number of agreed sales has also reduced, down by 2.9% although two markets – the NE and Scotland – have seen increases. Also, activity remains strong in the large detached five or more bedroom house market.
“The reality is that the market will continue to experience the Brexit jitters until the impasse in Westminster comes to an end,” says Glynis Frew, CEO of Hunters (left).
Rightmove’s spokesperson Miles Shipside highlights just how extraordinary the business environment is at the moment.
“I’ve seen lots of unusual events affecting the property market in my 40-year career, but a Brexit deadline followed by a snap general election six weeks later is obviously a new combination for me and for many thousands of buyers and sellers.
Marc von Grunherr of Benham and Reeves, says: “A seasonal slump in asking prices is always to be expected at this time of year, but the drastic reduction in the number of homes on the market indicates that many sellers have already gone into home selling hibernation.
“With next month’s election, many sellers will no doubt choose to remain there until the dust of political uncertainty has settled in the New Year, despite buyers continuing to tough it out.”
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