UK house prices slip for first time this year as Rightmove hails buyers’ market
UK house prices have slipped this month for the first time this year, signalling a buyers’ market in the second half of 2019.
Prices have fallen by 0.2 per cent, or £656, on average, according to Rightmove’s House Price Index, published today.
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Fewer properties are coming to market but it is taking longer to secure a buyer, therefore estate agents’ average stock per branch is at the highest level in four years.
The upper sector of homes with four or more bedrooms has been hit hardest by the price slump, as a newly listed property has seen a discount of 1.1 per cent.
Meanwhile the lower and middle sectors have held onto their prices this month and in comparison to July last year.
Ongoing political and economic uncertainty is causing some potential homeowners to delay buying a new property.
Miles Shipside, Rightmove director and housing market analyst, said: “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.
“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 past four years, so there should be more choice of properties to buy.”
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James Chidgey, relationship manager for Mortgage Advice Bureau, said first-time buyers were able to have their pick of homes in some areas as stock levels rose.
“First time buyers and second steppers appear to be maintaining their previous activity levels, which is encouraging news, as sometimes warm weather can prove slightly distracting,” he said.
“It’s quite possible that both groups are currently benefiting from slightly increased numbers of homes available in some areas, which not only provides them with more choice, but assists with their negotiation.”
He added that if Tory leadership race frontrunner Boris Johnson becomes the UK’s next Prime Minister, a pledge to cut stamp duty may create a temporary lull in the housing market.
Read more: House price growth slumps
“His potential reforms around stamp duty as part of an early autumn Budget may create a temporary pause in the market over the next few weeks as buyers wait to see if they might save a few thousand pounds on their transaction,” Chidgey explained.
Main image credit: Getty