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Shortage of supply fails to stop big price fall

Monday, 21 November 2011 9:38 AM

Asking prices for homes have fallen at their fastest rate for four years despite a shortage of sellers, according to the latest house price index from Rightmove.

The property website says the average asking price for a home fell 3.1 or more than £7,500 in November, the largest monetary fall since December 2007 and the third largest percentage fall on record.

And it came despite a shortage of homes on the market that should act to underpin prices. Listing numbers were down 13 per cent on October to reach the lowest November level since the collapse of Lehman Brothers in 2008.

However, Rightmove says the early seasonal slowdown in selling should strengthen buyers' negotiating power and create opportunities for buy-to-let investors.

The firm said economic uncertainty caused by the Eurozone crisis had eroded consumer confidence and was now dominating decisions when it came to moving home.

Miles Shipside, director of Rightmove, said: "Agents report that many would-be sellers are postponing their marketing until the new year, influenced by the current wall-to-wall media coverage of the Greeks and Italians attempting to get their own far-flung houses in order.

"It's no great surprise that those who have braved the stormy conditions have had to accept a substantial 'haircut' on their asking prices."

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