[ad_1]
The average price of property coming to the market for sale drops 0.4% (-£1,617) to £373,493. This is a bigger drop than the 20-year July average of -0.2%, as sellers try to capture the attention of buyers with a more tempting price heading into the thick of the summer holidays and the Olympics, according to the latest data from Rightmove.
Home-movers are dealing with more diversions than normal at this time of year, having just come through the distractions of the general Election campaign and the Euro football tournament, but prices remain stable overall at 0.4% higher than a year ago, the property portal said.
Industry reactions:
Matt Thompson, head of sales at Chestertons, said: “Following Labour’s general election win, buyers felt more confident to resume their property search this month. This is well-timed as we have also seen more homeowners putting their property up for sale, giving house hunters more choice. Boosting buyer demand further are mortgage rates as some lenders started offering more attractive mortgage products. We therefore predict July’s property market to remain busier than in previous years.”
Nathan Emerson, CEO of Propertymark, commented: “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. 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.”
Matt Nicol, managing director at Nicol & Co., noted: “We have seen a positive first half in 2024, with the market feeling reminiscent of pre-Covid times, which continued despite the prominent issue of Brexit & General Election news. We’re experiencing healthy supply and demand levels; however, the lack of mid-market homes has meant that first-time sellers are finding their options limited. Despite this, valuations and instructions remain strong, backing up the historical data that shows elections have minimal market impact. With CPI inflation down to 2% and potential base rate reductions ahead, the outlook remains optimistic. The new government’s focus on maintaining low taxes, inflation, and mortgage rates, along with plans to improve the planning system and unlock much-needed housing development, was positive news highlighted by new Chancellor earlier this week, and we hope this might add to the positive outlook for a healthy Autumn market and the future.”
Guy Gittins, CEO of Foxtons, said: “As expected, the housing market has stood firm despite the political uncertainty of a looming general election, even though a marginal reduction in asking prices suggests a point of consideration amongst some buyers and sellers. Thankfully, England’s EURO 2024 progress does not seem to have been a similar distraction.
“It’s already abundantly clear that now the political dust has settled, the post-election market is seeing a notable increase in activity in the few short days that have followed.
“It’s now a case of ready, set, go for the nation’s buyers and sellers and we expect market momentum to continue to strengthen over the summer, especially with the prospect of a rates cut due in September which could release even more pent up buyer demand – particularly at the one million pound and above price threshold.”
Verona Frankish, CEO of Yopa, commented: “There’s been a great deal of noise distracting homebuyers and sellers from keeping their eyes on the prize in recent weeks, from injury time and penalty drama at the Euros, to the general election. So it’s promising to see that despite these distractions, asking prices have remained largely unchanged and market activity has held firm.
“Given this continued display of strength, we largely expect that a summer of sustained house price growth is now on the cards and this will only increase as the reality of a base rate cut looms ever closer.”
Ruth Beeton, co-founder of Home Sale Pack, noted: “Although the impact of the election was always going to be minimal and momentary, it does appear to have caused some sellers to hold fire in the lead up to polling day.
“However, those sellers are best advised to act now if they do want to make their move this year, as we expect the market will now be hit with a considerable surge in activity over the coming months and this will inevitably cause delays to transaction timelines.”
Marc von Grundherr, director of Benham and Reeves, added: “Whilst England’s late run of form to reach a Euros final may have come as a surprise to many, the property sector has been largely predicting the continued resilience of the housing market for many months now.
“A brief dip in asking prices will do little to slow the momentum that has built so far this year and with the election now behind us, it’s shaping up to be a sizzling summer where property market performance is concerned.”
[ad_2]
Source link
