Subdued ‘autumn bounce’ in housing market opens door for first-time buyers

Updated

First-time buyers have a potential opportunity to negotiate a favourable deal this autumn – as house-sellers’ asking prices have seen a smaller “autumn bounce” than usual.

Across Britain, the average price tag on fresh property coming to market increased by 1% or £3,184 this month – the smallest rise for this time of year since 2010 – Rightmove said. Asking prices usually see a bigger autumn bounce at this time of year – typically increasing by 1.6%.

The average asking price is now £307,245.

Rightmove house price index
Rightmove house price index

Asking price growth is being dragged down by properties with two bedrooms or fewer. Asking prices on these homes fell by 0.1% month on month on average.

This is the usual target market for both affordability-stretched first-time buyers and buy-to-let investors, Rightmove said.

It said that less buy-to-let investor activity is giving first-time buyers an opportunity this autumn.

Miles Shipside, director of Rightmove, said aspiring first-time buyers have “an autumn opportunity to negotiate a favourable deal”.

He continued: “The story at this time of year for the last five years has been an average autumn bounce of 1.6% in the price of property coming to market.

“Whilst all regions have seen a monthly rise, this year has a more subdued narrative with only a 1% uplift.”

Mr Shipside said tax changes for buy-to-let investors have helped to tilt the balance of housing market activity back towards first-time buyers.

Properties with two bedrooms or fewer are now taking longer to shift typically than a year ago – up from 55 days to 58 days.

The average asking price on a typical first-time buyer property is now £190,587.

Mr Shipside said: “Landlords are clearly buying far fewer properties and that leaves a gap in the market for first-time buyers.

“While landlords were hit with a 3% stamp duty surcharge on property purchases back in April 2016, in contrast most first-time buyers were effectively awarded stamp duty-free status in November 2017.”

He said those stamp duty-free first-time buyers now have an opportunity to negotiate harder.

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