United Kingdom house prices edge higher amid rising demand

Elias Hubbard
July 17, 2017

In July, the average asking price on a property coming to market across England and Wales edged up £312 to reach £316,421.

Nearly half of estate agency stock has been sold subject to contract so far this year, as buyer demand continues to outweigh supply, Rightmove has reported.

Monthly price growth in the South East and the South West remained flat at 0%.

First-time buyers saw average prices fall back 1.7% to £196,450 against last month, but tight affordability means they remain under pressure.

House prices for newly marketed properties have been at a "virtual standstill" in July, according to the latest Rightmove index, up 0.1 per cent from June.

There are more houses being put up for sale compared to when the European Union referendum was held this time past year.

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.

United Kingdom house prices are "virtually at a standstill" as consumers contend with a squeeze on living standards, Rightmove Plc said.

This reversed the 0.4% dip taken by average prices last month and means average prices in July are 2.8% higher than in the same month a year ago.

'It now seems certain that we will have continuing political uncertainty, which the housing market traditionally dislikes, and with the first fall in June prices for eight years there is no doubt that the lack of stability is a factor, ' said Miles Shipside, Rightmove director and housing market analyst.

Murphy explained the United Kingdom property market is seeing the highest levels of stock sell-through since Rightmove started to track the metric - which is means demand for property remains strong with consumer confidence largely undaunted, and underlying market fundamentals remaining robust. 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.

Higher inflation and lower wage growth may mean the Bank of England holds off on raising interest rates while disposable incomes are squeezed, and there are signs that consumer credit is tightening.

The report also says home buyers are encountering more "sold" boards slapped on properties than at any other time in the last seven years. "High demand will continue to underpin prices, but we are seeing stretched affordability limiting the pace of rises, especially in the south of the country".

Compared to the period around the referendum a year ago, more sellers have come to market and more buyers are buying.

"Prices are in the summer doldrums".

Other reports by Click Lancashire

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