ibusinesslines.com
ibusinesslines.com July 28, 2017


United Kingdom house prices edge higher amid rising demand

17 July 2017, 02:51 | Kelvin Horton

House prices remain flat a year after Brexit - Rightmove

Asking prices ‘remain muted’ despite high demand from buyers

He concludes: "After all, Rightmove's data is based largely on listed stock and asking prices, and is just a mere toe dip into the United Kingdom property market pool, and it doesn't necessarily portray the overall temperature of the market, as a sale agreed doesn't guarantee it will be completed".

Jeremy Duncombe, director, Legal & General Mortgage Club, said: "Today's figures mirror the slowing of house price growth that we saw in the recent RICS survey, but activity in the mortgage market remains strong - and the property market outside of London and the South East continues to show healthy growth".

A jump in inflation to almost 3 percent has hurt the spending power of many people in Britain, contributing to a slowdown in the economy and in house price rises.

Meanwhile, average housing stock per agent was flat, at 60 in June, while the average time to sell increased by one day, to 60, which is two days longer than the same time a year ago.

But with consumers facing rising inflation and slower wage growth, there were signs that some properties had hit their price ceiling.

"Buyers, many of whom are sellers too, will struggle to afford to pay much more", Shipside was quoted as saying by the Daily Telegraph.


Meanwhile pressure will be increased further on homeowners after three of the Bank of England's eight policymakers voted to raise interest rates last week.

'We can see now that price rises are muted despite high housing demand, indicating we have left the stage of the cycle where price rises exceed the rate of inflation'.

The number of sales agreed rose by 4.6 per cent in June 2017 compared to June 2016, putting the year-to-date figure nearly on a par with last year, when activity was boosted by the rush to beat the stamp duty deadline. The average asking price climbed to £316,421 (S$567,612), a "relatively subdued" 2.8 per cent increase from a year earlier. We're also seeing a return to the North-South divide in terms of price growth.

The housing market is approaching something of a standstill as the summer holiday season begins according to a downbeat report from Rightmove.

"Prices are in the summer doldrums". Sellers coming to market at this time of year have to price more keenly, as the traditionally bubblier spring selling season is over and prospective buyers are distracted by their own summer holiday plans.

The number of sales agreed was up by 4.6 per cent in June 2017 compared to June 2016, and the number of sellers coming to market was up 7.6 per cent on the same period a year ago.



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