Country properties hardest hit in price drop
Almost half of properties are selling below asking price, with country homes hit hardest from waning demand and a fast-drying pool of disposable income.
Hamptons estate agents analysed data from Countrywide’s and found that properties selling below asking price hit 47% this month - the highest proportion since March 2021.
The findings suggest that the so-called ‘race for space’, which saw the growth of rural sales outpacing that of urban sales by around 10% in the pandemic-hit months of 2020 and almost 5% in the first half of 2021, has made an about-turn. Customers appear to be making their way back to the cities and suburbs.
Read more: ‘Race for space’ overblown as city living remains strong
On average, country properties sold in 2022 went for 98.6% of their asking price, dropping by more than ten basis points from 99.9% in 2021 – the largest decline across any type of property.
In contrast, city properties went for 99.4% of their asking price, while homes in towns and suburbs achieved 99.6% of their asking price, dipping by 0.2 and one percentage point respectively on a yearly basis.
Experts say the drop was probably bigger in the last two months, with record-breaking mortgage rate hikes, the Telegraph reported.
Data showed that the drop in buyer interest was most apparent in the higher price brackets. Buyers registering to buy homes priced between £750,000 to £1mn and £1mn to £2 mn fell in number by 29% each from the previous year.
Sensing the waning demand, countryside sellers appear to be quickly listing their properties, with the number of new rural listings swelling by 16% in the last three weeks compared to the same time last year.
Read more: Cities drive house price growth in 2022 – report
“Several weeks of political and financial market turmoil have accelerated the housing market’s bump back down to earth,” said Hamptons’ Head of Research, Aneisha Beveridge.
