Property industry reacts to new Rightmove House Price Index

The average price of property coming to the market for sale has dropped by 0.3% (-£1,277) this month to £378,240. This is an unusual dip in prices for June, as new sellers lower their price expectations.

Some segments of the market are performing more strongly than others, with affordability and supply levels key, according to the latest data from Rightmove. 

The higher-priced southern regions and the capital have seen larger price drops this month, being more affected by higher stamp duty charges, and seeing greater increases in available homes for sale

Prices in the more affordable North West, Wales and Yorkshire & The Humber have risen quickest this month, and the overall average asking price for a home is still 0.8% ahead of this time last year

UK property asking prices fall amid supply surge – Property Industry Eye

Industry reactions:

Tom Bill, head of UK residential research at Knight Frank, said: “The stamp duty cliff edge in April cooled demand and sellers have realised just how much of a buyers’ market it is. The number of new UK listings in May was 25% higher than the five-year average while the number of new buyers was a fifth lower, Knight Frank data shows. Supply has risen for reasons that include delayed activity due to last year’s election and Budget, a degree of financial distress as mortgage rates normalise, and a growing number of landlords trying to sell due to legislative changes. Whatever the cause, asking prices need to reflect this imbalance, particularly for anyone wanting to move before speculation ahead of the autumn Budget potentially drags on activity after the summer.”

 

Toby Leek, president of NAEA, Propertymark, commented: “This modest dip is welcome but is more than likely due as a result of the backlash in the increase in stamp duty across England and Northern Ireland. A considerable number of first-time buyers will see this dip in house prices balanced out by the tax increase. Moving forward, many homebuyers will need additional support in order to enter onto the property ladder considering first time buyers need around a £60,000 deposit to buy a home.”

 

Josephine Ashby, managing partner of John Bray Estates, remarked: “Serious sellers are more focused than ever, reducing or listing property at much more attractive asking prices. Buyers have more choice than ever, so the combination of a rare abundance of high-quality properties at much reduced guide prices in the prime coastal areas, is resulting in the tide finally turning in a positive way.”

 

Adam Feather, managing director at Robert Anthony, said: “The property market is likely to remain rather soft over the next few months. Following the changes to stamp duty thresholds in April, the market saw a clear shift in momentum, with activity levels slowing in recent weeks. With affordability still stretched and borrowing costs relatively high, the risk of a more prolonged slowdown cannot be ignored.”

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