0:02 AM, 15th July 2024, About 24 hours ago
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House prices in the UK saw a small dip in July as sellers adjusted their strategies for the summer market, according to the latest Rightmove House Price Index.
The average asking price dropped by 0.4% (-£1,617) to £373,493, exceeding the typical July fall of -0.2%.
Rightmove suggests this dip reflects sellers aiming to capture buyer attention during the busy summer period, which coincides with the Euros and the Olympics this year.
While political uncertainty surrounding the General Election was a concern, the platform’s data indicates the vast majority continued with their moving plans.
Tim Bannister, Rightmove’s director of property science, said: “Three major uncertainties hanging over the property market at the start of the year were when the first interest rate cut would be, and the timing and the result of the General Election.
“We’ve now got the political certainty of a new government with a large majority, which we expect will help home-mover confidence.
“It’s very early days, but the new Chancellor’s immediate announcements on housebuilding targets and planning reform are positive signs that the government is keen to get going with its manifesto pledges.”
He added: “With many areas of the market that could be improved, we hope that the new government is able to get on with its plans and deliver sustainable housing policies that help the market in the medium to longer-term.”
Despite the price dip, the number of sales agreed remains encouraging, sitting 15% higher than the same period last year highlighting that serious buyers are pressing on with their moves.
The number of new sellers entering the market is also steady, suggesting the election did not deter most movers, the index reveals.
While affordability remains a concern, particularly for first-time buyers, Rightmove reports stable overall buyer demand.
The expectation of a rate cut in the coming months, however, appears to be influencing some potential buyers to wait for improved affordability before acting.
Political certainty and a potential interest rate cut could combine to create a positive outlook for the autumn property market, with improved affordability and increased buyer confidence.
Propertymark’s chief executive, Nathan Emerson, said: “Any slight dip in house prices is likely to only be a temporary phase following a period of uncertainty triggered by the recent General Election.
“Once we start to hear more news from the new UK government about how they intend to build 1.5 million new homes before the end of this parliament, alongside their other priorities for housing, this should give consumers the certainty they need to determine if they will relocate or not.”
He adds: “Should inflation also continue to drop; the Bank of England may feel confident to start cutting interest rates to provide the housing market with a much-deserved summertime boost.”
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