UK House Prices Rise Slightly In July: Rightmove

Rightmove director Miles Shipside said high demand would continue to support house prices in the coming months but that a squeeze on consumers’ purchasing power would limit the rate of price rises.

Jeremy Duncombe, director, Legal & General Mortgage Club, added: “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”.

This reversed the 0.4 per cent drop in monthly asking prices in June.

Average asking prices of property reached GBP 316,421.

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

Mr Shipside said: ‘Despite the number of sold boards outside people’s properties almost equalling the number of properties that are still up for sale, especially as you go further north, sellers should note the market remains very price sensitive as some properties are hitting their price ceiling. “Buyers, many of whom are sellers too, will struggle to afford to pay much more”.

In the East of England asking prices increased by just 0.6% month on month to £351,276 but are still 3.8% higher than a year ago and in Wales they increased by 0.8% to £184,308 but are 0.5% down year on year.

The Bank of England has is considering when to raise interest rates although most of its top officials have suggested now is not the time.

Despite this, prices are still up by 3.8% or £11,037 up on this time previous year, however the Index shows that a North-South divide seems to have re-emerged.

‘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 agreed sales in June rose by 4.6% year-on-year, while the number of sellers was up by 7.6%.

Across the country, London recorded the biggest month-on-month increase in asking prices in July, with a 1.1% rise, followed by the West Midlands with a 0.7% increase and Wales with growth of 0.6%.

Prices increased by 1.3% in the North West and the East Midlands month on month to £188,313 and £208,127 and are 2.6% and 5.1% higher than the same month in 2017.

The slowest annual growth is in London, where prices are up just 0.9 per cent, to an average of just over £641,000.

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”.

Brian Murphy, head of lending for Mortgage Advice Bureau, said: “Other factors, such as the average time to sell standing at 60 days in this month’s report, has remained broadly unchanged now for the last quarter, and also points to market consistency in most areas that again flies in the face of some who might suggest that the market is in negative territory”.

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