Why Yorkshire estate agents are gearing up for 'very strong September' after asking price drops

The property website's latest House Price Index report said the average asking price for the region now stands at £253,762. While this is down on last month, compared to the same point last year it is 0.4 per cent higher.

Across Britain, the average price of a home coming to market fell by 1.3 per cent, or £4,969, month-on-month in August to stand at £368,740, Rightmove said.

August’s price drop is in line with the average for this month seen over the past decade, following the bigger-than-usual falls in June and July, the report added.

In Yorkshire and Humber, it typically takes 63 days to find a buyer, close to the national average of 62.

Rightmove said there is a “two-speed market” with savvy summer sellers pricing realistically to attract buyers, while others are pricing properties too high.

Steve Beercock, Executive Director at Beercocks in Yorkshire and the Humber, said there are plenty of promising signs in the regional market with “particular strength” in mid and high-end priced properties.

He said: “August has started with some real momentum.

"We have already seen a surge of sales agreed in just the first week which is a very positive sign. Getting the price right from the outset in the current market is crucial, to minimise the risk of needing to cut the price later.

"Locally in Yorkshire and The Humber, we have seen particular strength in the mid to high-end market, with healthy levels of activity also coming from buy-to-let investors.

"Stamp duty thresholds are not having a major effect at the moment. We saw the expected spike before and immediately after the most recent change, but things have now settled.

"Looking ahead, I expect September to be very strong. The recent drop in the Bank of England base rate is already stimulating activity.

"Mortgage colleagues have seen a marked increase in buyer enquiries in the past couple of weeks, and we are seeing exactly the same in our estate agency.

“With that combination of lower borrowing costs and motivated sellers who are pricing sensibly, the autumn market is shaping up to be busy and competitive.”

Nationally, just over a third (34%) of properties for sale are reduced in price, and since 2012 the figure has only been higher at this time of year in 2023, Rightmove said.

It said the number of sales being agreed is 8 per cent ahead of this time last year as serious buyers and sellers lock in deals.

The number of homes for sale is 10 per cent up compared with this time last year.

Colleen Babcock, a property expert at Rightmove, said: “Savvy summer sellers have read the room and are coming to market with even more competitive pricing than usual to really stand out and attract serious and active buyers.

“Astute buyers are now benefiting from new seller asking prices which are on average an enticing £10,000 cheaper than three months ago. Buyers have the upper hand in this high-supply market, so a tempting price is vital to agree a sale.

“The strategy is working, with the number of sales agreed in the full month of July being the best at this time of year since 2020.

“At that time, the market had recently reopened after the first pandemic lockdown, and generous stamp duty reductions had just been announced.

“However, the high number of price reductions we’re seeing is an indicator that some sellers are still coming to market with too high a price and then reducing it to become competitive.”

The Bank of England’s recent base rate cut is likely to be another boost of confidence for the market over the remaining months of the year, Rightmove said.

Ms Babcock added: “Strong summer property sales as well as a stable level of new buyer demand bode well for the next couple of months. We usually see a busier autumn compared to the summer as the new school year starts and more focus returns to moving home.

“Autumn sellers may also be hoping to be in a new home by Christmas, but they would need to beat the average time to find a buyer and complete a home sale.”

Matt Smith, Rightmove’s mortgages expert said: “The markets are currently forecasting one more (Bank of England base rate) cut before the end of the year.

“Lenders have moved their rates downwards to remain competitive, but there doesn’t look like much room for too many further reductions if current market forecasts play out.

“We could potentially see some lenders squeeze their margin to gain a competitive advantage, but I don’t think this would play out across the market and would likely target specific segments of movers.”