By The average asking price in the UK fell for the first time this year, slipping by 0.2 per cent in July, according to a recent house price index from Rightmove.
The decline represented a drop of £656, leaving house asking prices at an average of £308,692. Moreover, prices of newly-listed property in the upper sector of the four-bedroom-plus market fell by 1.1 per cent, while lower and middle-sector properties recorded better values this month, as well as year-on-year.
A buyer’s market in 2019
These figures indicate that it is likely to be a buyers’ market in the second half of 2019, according to Rightmove. This comes as a result of less property reaching the market and sellers finding that it takes longer to secure a buyer, allowing the average stock per branch for estate agents to reach its highest level since July 2015.
On an annual basis, asking prices dropped by 1.7 per cent in Greater London, falling by 0.2 per cent to £617,941 month-on-month. The South East recorded a 0.5 per cent decline on an annual basis, remaining unchanged month-on-month at £409,905, while prices fell by 0.6 per cent in the East region of England and remained at £354,104 on a monthly basis, according to the house price index.
Scotland and the South West were the only regions to record an increase in July, with the average asking price rising by 1.3 per cent and 0.3 per cent. In the East Midlands, prices were up by 0.5 per cent, but fell month-on-month by 1.3 per cent, while the West Midlands saw an annual increase of 1.2 per cent but a drop by 0.3 per cent on a monthly basis.
Properties and sales agreed decline
The number of properties listed on the market saw a fall of 7.8 per cent, while the number of sales agreed dropped by 4.6 per cent, year-on-year, according to Rightmove’s house price index.
Miles Shipside, director and housing market analyst of Rightmove, commented: “The housing market fundamentals remain largely sound in many parts of the country, but the current political climate means that the crucial ingredient of confidence has been impaired, and that is causing some potential buyers and sellers to hesitate.”
Mr Shipside added: “With record employment, low interest rates and good mortgage availability, buyers have a lot in their favour, apart from the lack of political certainty. Those who have postponed their purchase should note that estate agency branches have more sellers on their books than at any time for the last four years, so there should be more choice of properties to buy.”
Mr Shipside concluded that it could be a good opportunity to negotiate a relative bargain in the second half of the year, if buyers set aside the continuing distractions posed by Brexit.
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