House asking prices fall following Brexit
Property website Rightmove says its latest data takes the average asking price to £307,824 in July, down from £310,471 in June. It’s the first drop in asking prices since December 2015.
The figures cover the two weeks prior to the referendum on 23 June, and two weeks post-Brexit – so it’s an early indicator of how the vote may affect house prices.
In the two weeks post-referendum, enquiries to agents from buyers were also down by 16% compared to the same period last year.
However, Rightmove believes it’s “too early to draw any medium or long-term conclusions”, while it adds that a dip in prices isn’t unusual in the run-up to the summer holidays.
House prices have also risen by 4.5% this month compared to last July.
Miles Shipside, Rightmove director and housing market analyst comments: “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.”
Kevin Shaw, sales director at Leaders Estate Agents, agrees that nothing dramatic has yet to happen. He says: “There has been a lot of noise about Brexit’s possible effect on the property market, but in fact nothing dramatic has happened over the last few weeks and it’s very much business as usual for anyone looking to buy or sell a property at the moment.
“We’ve seen no significant changes across our 120 branch network: the number of sales agreed, exchanges and new instructions are all at similar levels to the previous few months; nor has there been any significant increase in the number of sales falling through as some had predicted.”
Wales sees biggest price falls
On a regional basis, asking prices in Wales have been worst hit, falling by 2.3% in July to £180,861 – down from £185,145 in June. However, prices in the country are up 2% annually.
The smallest fall in asking prices was recorded in the East Midlands, where prices fell by 0.2% from £198,090 in June to £197,705 in July. Again, prices were up 3.9% compared to July 2015.
Everything you own: all your assets (property, cars, investments, savings, insurance payouts, artwork, furniture etc) minus any liabilities (debts, current bills, payments still owed on assets like cars and houses, credit card balances and other outstanding loans). When you’re alive this is called your wealth; when you’re dead, it becomes your estate.