You are here: Home - Mortgages - First Time Buyer - News -

House prices fall for the first time this year

0
Written by: Christina Hoghton
19/06/2017
Average property prices fell by 0.4% (-£1,172) in June, the first monthly price fall of the year, and it's the first time asking prices have dropped in June since 2009.

Property portal site Rightmove which records average asking prices, said the drop has pulled back the annual rate of price inflation to 1.8%, its lowest level since April 2013.

The average UK asking price is now £316,109.

Sales boost

Despite the price dip, the number of sales agreed at this time of year is the second highest for 10 years, only slightly lower than the high of May 2014, and up 7% over the last 12 months, said Rightmove.

Housing markets in the North of England have performed particularly well, forging ahead with an 11% increase in sales agreed year-on-year, compared to just a 3% increase in the South.

Miles Shipside, Rightmove director, said: “It now seems certain that we will have continuing political uncertainty, which the housing market traditionally dislikes, and with the first fall in June prices for eight years there is no doubt that the lack of stability is a factor.

“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. However, demand is still high and markets in some parts of the country seem to be getting used to coping with instability and are still strong. The high levels of sales being agreed show that the underlying fundamentals are largely unchanged with high first-time buyer demand which drives movement higher up the ladder, all aided by the cheap cost of borrowing.”

Kevin Shaw, national sales director at estate agency Leaders, added: “Since the 8th June, even with the continuing political uncertainty, it’s very much business as usual for the property market. While some people may be adopting a wait and see approach, many more are wanting – or needing – to press on with their property transactions. We have, however, started to see a slight hardening of attitude from buyers so sellers need to have realistic expectations and be prepared to be flexible in negotiations.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
home survey
Wealth inequality ‘rising again after decade-long fall’

Wealth inequality in Britain is rising again after a decade-long fall, according to a report.

Close