Rightmove says property prices drop by 0.2% in July following a 0.3% rise the previous month
UK house prices fell this month for the first time this year suggesting it will be a buyers’ market in the second half of 2019, according to property website Rightmove.
Rightmove says the price of property coming to market fell by 0.2%, or £656, this month - the first monthly fall so far in 2019.
On an annual basis they also fell by 0.2%, taking the average price down to £308,692.
The property website says that fewer properties are coming to market and it is taking 62 days to secure a buyer – the longest in six years.
Despite this, estate agents have more properties on their books than at any time since 2015.
The upper end of the market was hardest hit, with the value of four bedroom and larger properties where buyers are less likely to need a mortgage dropping by 1.1%.
Meanwhile, medium- and lower-end properties managed to retain their value over the last month compared to last year.
Miles Shipside, Rightmove housing market analyst, says: “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.”
Asking prices in the capital fell by 0.2% on the previous month and 1.7% annually, while prices across the South East have fallen by 0.5% in the past year.
The East Midlands recorded the biggest monthly fall, with prices dropping 1.3 %.
Wales, the West Midlands, the North West, the North East and Yorkshire & the Humber also recorded monthly price falls.
Scotland recorded the biggest monthly price rise at 1.3%, taking the average price to £153,174.
James Chidgey, relationship manager for broker Mortgage Advice Bureau, says: “Together with highly competitive mortgage product rates which are also providing support to those purchasing at the moment, there does appear to be a new dynamic of a buyers’ market in regions which, up until very recently have seen seller’s holding the reins.
“This being the case, it might counterbalance some lingering confidence issues. One would hope that, once the new Prime Minister is announced in a couple of weeks’ time, this will also help to provide more stability and encourage those buyers who are yet to take the plunge to dip their toe in the water and start making offers.”
UK house prices in July
Source: Rightmove, July 2019
House Prices Drop
Still a long way to go before normality. There will be no crash but prices will fall.