The Rightmove.co.uk House Price Index has seen its first fall in asking prices in 2014, which is unsurprising after the varied reports of a slowdown in both London and wider UK. However this has not impacted the year-end annual forecast for growth.
- Fall in asking prices by 0.8% in July (9th June to 12th July).
- Knock on fall in the annual growth rate from 7.7% to 6.5%
- The average property asking price is now £270,159
Miles Shipside, Rightmove director and housing market analyst comments:
“A price fall in July is not unexpected as prospective buyers turn their attention to the summer holidays, not to mention the added distraction of an engaging World Cup. Buyer
confidence may also have taken a knock with suggestions that mortgages are becoming harder to get and repayments may get more costly sooner than originally anticipated should the rumours of an interest rate rise before the next election come true.“
Rightmove.co.uk 2014 forecast upgraded to 8% for new seller asking prices. This means it will hit the top end of the original forecast of 6% - 8%, despite the fall in the annual rate seen this month.
Miles Shipside concludes:
“We have upped our forecast to the top of our range, because while there is more buyer choice due to increased property churn, the extra supply is not in the main “London ripple” areas of highest demand. In addition, momentum is building in other parts of the country, with the ripple effect having also reached the northern cities of Manchester, Leeds, York and Liverpool. We forecast a slower-paced second half of 2014, but with bigger-deposit third-time movers entering the fray and lenders still having lending targets to meet, there is still enough momentum to see an 8% national average increase in new
seller asking prices. The fundamentals for making 2014 the year to the move still hold good.”
Regionally most areas felt the squeeze on asking prices and saw falls with only East Anglia, with 0.7% and the North West and West Midlands, both with a 0.2% rise.
The worst areas affected by the fall in asking prices were the North and East Midlands with a fall of -1.9%, followed by the South West with a -1.5% fall.