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

House prices fell 0.9% in July

Written by: Christina Hoghton
The impact of Brexit on the traditional house price summer slowdown has so far been minimal, according to Rightmove.

The property portal said that average UK house prices fell by 0.9% or £2,647 in July – over a period covering the two weeks before and two weeks after the referendum.

Buyer demand in the two weeks since the referendum remained consistent with the same period in 2014, although it was down 16% on 2015.

However, Rightmove noted that last year’s figures were boosted by pent-up demand being released into the market after the result of the general election, creating a distorted view of the level of buyer enquiries for the months of June and July, which had surged by 25% compared to the same two months in 2014.

Director and housing market analyst Miles Shipside said the figures gave an ‘early but reassuring view’ into the short-term effect of the political turmoil straddling the 23 June with many estate agents reporting that business was now returning to the previous norm following the ‘surprise result’.

“As far as the price of property coming to market is concerned, the fall of 0.9% is within the range that we have seen at this time of year since 2010. With the onset of the summer holiday season, new sellers typically price more conservatively and the average drop in the month of July is 0.4% over the last six years.

“Perhaps unsurprisingly this July’s fall is marginally larger, as political turbulence has a track record of unsettling sentiment. Indeed last year saw a seasonally unusual 0.1% fall in the run up to the May election, and a June and July price surge as a result of the post-election boost. Average new seller asking prices were up by 3.1% over that two-month period.”

Seller numbers stable

Sellers are still coming to market, with new property instruction numbers now slightly ahead of the same weeks in 2015. Compared to the same period last year, the two weeks before the Brexit vote saw the number of properties coming to market down by 8%, though the two weeks afterwards have now seen the levels up by 6%.

Mark Manning, director of Manning Stainton in Leeds, Harrogate, Wetherby and Wakefield, said demand and the availability of homes to buy looked healthy in the north. New listings in June increased by 7% on the previous year and the volume of sales remained at a similar level to the previous months. “The barrage of fall throughs in the wake of our vote never came and instead a healthy number of completions remained which was a welcome relief,” he added.

Kevin Shaw, Leaders Estate Agents national sales director, said his firm had seen no significant changes across its 120 branch network with the number of sales agreed, exchanges and new instructions all at similar levels to the previous few months. The predicted increase in the number of sales falling had also not materialised.

“While we have seen a small number of buyers attempting to renegotiate the price they are paying for a property, these requests have almost all been rejected and the sale has progressed as planned, showing that Brexit has had little impact on buyers and sellers, and their desire to move,” he said.

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.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week