United Kingdom asking prices drop for the first time since 2009

Vincent Carr
July 17, 2017

Almost half (45 per cent) of the properties listed for sale in the past month are already under offer, the highest proportion ever recorded since Rightmove started tracking this data seven years ago. But there are some signs of recovery from last year's lows with the number of sales agreed up by 3% on the same time last year.

Newly-marketed property prices edged up 0.1% in June, which was stronger than the previous month's fall of 0.4%, and is a solid performance as the start of the summer holiday season generally has a dampening effect on both prices and activity, Rightmove said.

Monthly price growth in the South East and the South West remained flat at 0%.

Rightmove's house price index showed prices have risen 0.1 per cent so far this month, or 2.8 per cent since last July.

The North East saw the biggest month-on-month fall in asking prices, with a 1.3 per cent decline, followed by Yorkshire and the Humber with a 1 per cent fall and the North West and East of England, where prices fell by 0.7 per cent.

Rightmove's findings for July come after the Royal Institution of Chartered Surveyors reported that the average number of properties available per agency branch had fallen to an all-time low in June.

Average house prices remain subdued, although the number of transactions is on the rise, according to the latest Rightmove House Price Index.

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Rightmove director Miles Shipside said high demand would continue to support house prices in the coming months but that a squeeze on consumers' purchasing power would limit the rate of price rises.

'The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events, ' he pointed out.

'Having said that, the historic under supply of the right property at the right price and ongoing strong housing demand are evidenced by buyer enquiries to agents picking up to a degree after the surprise election result.

He continues: "We can see now that price rises are muted despite high housing demand, indicating we have left the stage of the cycle where price rises exceed the rate of inflation".

As the fundamentals of the housing market remain good, the online property experts said, this had led to the number of sales agreed numbers remaining nearly identical to those in 2016, with many parts of the country seeing as high a proportion of properties marked as sold than at any time in the last seven years.

The number of agreed sales in June rose by 4.6% year-on-year, while the number of sellers was up by 7.6%.

"Prices are in the summer doldrums", said Mr Shipside.

Other reports by BadHub

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