Over the spring and summer this year, an increasing number of homes for sale underwent price reductions.
And there has been a clear upward trend in the proportion of listings which have had asking prices reduced by 5% or more.
Pandemic house price boost adds to affordability troubles
Our latest data shows 6.1% of homes for sale have been reduced in price this year, the highest level since before the pandemic, although re-pricing is a common seasonal trend as we enter the autumn market.
After two years of being a red-hot sellers’ market, it looks like the UK housing market is shifting back to becoming a buyers’ market.
Rising mortgage rates set to reduce buying power by 28%
However, these price adjustments are to be expected as the market transitions from one where demand greatly exceeded supply to one where buyer demand is reducing.
The reductions don't mean we're about to see big price falls, but they do suggest house price growth will start to slow at the end of this year and into next.
That means anyone looking to sell their home this autumn and winter - or next year - will need to make sure their house is priced at the right level to ensure a sale.
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And while demand for homes will weaken, we still expect ongoing pandemic and cost-of-living pressures to stimulate homeowners to want to move, while being more cautious on pricing.