Autumn Rebound Could Follow Summer Lull
Wednesday 24 August 2016
Average asking prices for UK homes fell by more than £3,600 over the last month thanks to a summer lull and Brexit uncertainty.
Data from the property listing website Rightmove shows that new listing prices dropped by an average of 1.2 per cent to £304,222, following a seasonal trend that has been in place since 2010.
Industry experts now believe 2016 could be divided into two halves: a rush to beat the deadlines of the Stamp Duty surcharge and the EU referendum in the first six months and the potential for an autumn rebound in the second half.
Rightmove director and housing market analyst, Miles Shipside, notes that many would-be buyers take a vacation from home-hunting during the summer, while sellers tend to price more aggressively during the same period.
He said the summer had also been affected by turbulence from the EU referendum vote to leave Europe as well as the impact of a rush to beat the April deadline of the Stamp Duty surcharge.
He added that this month’s fall is exactly in line with the long-term average.
However, the figures show that growth has slowed from 4.5 per cent to 4.1 per cent annually.
London's month-on-month drop of 2.6 per cent to an average of £619,409 was faster than anywhere else.
At the same time new listings for homeowners looking to make their first move up the property ladder are up 6 per cent to £257,495, while first-time buyers have watched prices slide 0.5 per cent to £188,237.
Homeowners at the top of the ladder have seen the slowest annual growth and biggest monthly drop in prices at £538,755, down 2.9 per cent since July and up by a mere 2.7 per cent compared to last year.
Homes with four bedrooms or more, are taking 74 days to sell while first-time buyer and second-stepper properties take an average of 58 days.
While properties may be taking longer to sell at 60 days, compared with 57 in May, they are actually selling faster on a year-on-year basis.
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