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Tuesday, September 20, 2016

Asking prices start to recover

Rightmove has released its House Price Index for September 2016
  • Prices of property coming to market up 0.7% (+£2,277) following a 2.0% fall 
  • Prices of smaller properties  coming to market ( 2 beds or less ) up 3.3% (+£6,240) 
  • Asking prices now almost £20,000 (+10.5%) higher than a year ago in this sector
  • Seven out of 10 regions see asking prices rise or standstill
  • First full week of September sees visits to Rightmove up 8% on same period in 2015

 Rightmove's Miles Shipside, comments: 

“Some of those trying to get onto the property ladder may have wistfully listened to speculation of lower prices in a post-Brexit Britain. While the referendum result has created additional downwards price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are now finding it harder to achieve their goal in the post-Brexit-vote aftermath. In their favoured target sector with two-bedrooms or fewer average asking prices have jumped by over £6,000 in the last month as we enter the typically active Autumn market.”

The rising tide of prices is marooning more and more first-time buyers, out-stripping their ability to meet stricter lending criteria and afford the required deposits and monthly repayments. Increasing numbers are being cut off from home-ownership altogether and while schemes are in place to help, the additional demand they create is not matched by available and affordable supply. With an average rise of over 10% in prices of typical first-time buyer properties over the last 12 months, minimum entry prices in some locations will go above what lenders are able to lend to most aspiring first-time buyers. Ironically the post-referendum uncertainty has made some sellers of larger and higher value homes more willing to negotiate, making it easier for those already on the ladder to trade up. There appear to be no such positives at present for those hoping to get onto the property ladder, especially as agents report more investor activity attracted by better returns than available elsewhere.

The market continues to shake off the effect of post-Brexit vote uncertainty, though more so in the lower end sector. Buyers are still looking and enquiring, but there are limits on their willingness or ability to pay over the odds so sellers should be wary of over-pricing unless their local market can really justify it.”

property asking prices august2016

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