A drop in property prices is fantastic news for investors
An oversupply of properties for sale, along with the August holiday slump, has caused average property prices to fall again.
According to Rightmove’s monthly house price index, the average property price in August was down to £232,241from £236,332 in July.
After a price increase of 4.3% during the 12 months up to August, prices fell 1.7% in August, which is a decrease for the second consecutive month. Newly for sale house prices fell by over £4,091, with available stock in August up 41% on the same time last year.
The number of houses for sale in the UK rose 41.3% to 29,220 a week from a year ago, Rightmove claims.
Rightmove also said in a statement: “Anticipated interest rate rises could lead to more repossessions, though this would improve buyer affordability by exerting further downward price pressure.”
According to property experts, the decrease is due to an oversupply of properties for sale, along with a drop in activity in the property sector. Plus because of the holiday season, July and August have traditionally seen a decrease in both prices and demand.
But Brits still appear to be interested in the housing market, as Rightmove state they still have high activity on their website.
Obviously, this is good news for property investors, as more properties are available and at lower prices, to buy for future profits. Residential property has gained 117% over the last 10 years, even with the recent credit crunch.
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Tags: house price, property experts, property investors, property market, property portfolio, property prices
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