House prices off the boil?
For the first time this year, the asking prices posted on the Rightmove website for homes in London fell by 0.5% in early June, compared with the month before, in part due to a rapid increase in sellers rushing to cash in on rising prices.
Rightmove added that asking prices have “come off the boil” and prices in England and Wales are at a virtual standstill, rising by just 0.1% – or £272 – on the previous month.
On a year-on-year basis, though, prices in London are up 14.5% on a year ago, even after the slide in asking prices put on sale by estate agents compared to the month before.
“The London market powers the rest of the UK but is starting to run out of steam, said Miles Shipside, Rightmove’s director and housing market analyst.
“While the legacy of rises in central London continues to ripple out to its better-value commuter belt, fuelling price increases in all southern regions, London itself is now marking time. It’s an example to the rest of the country of what happens when affordability and common sense get stretched too far,” he said.
The housing market usually dips in June and the summer months but Rightmove said this month’s slide was below the 0.6% average over the past 10 years.
“Some sellers will be looking to cash in and possibly get a lot more house for their money further out, but they may have missed the peak in the rush to realise their gains as parts of London appear to have hit the upper limit price buffer.
Alan Wiiliams, Managing Partner at Fenn Wright says: “We welcome this news from Rightmove which confirms our own assessment. This development should avoid the need for a sharp correction in the market further down the line, which is everyone’s fear when price rises continue unchecked.
We have seen activity and demand at fever pitch for most of this year which in many ways is great for us and our clients, but we are frankly quite relieved to see the market come off the boil at this time. There is still plenty of demand and confidence but perhaps less of a feeling of runaway house prices inflation.
In a ‘normal’ market, we expect to have to work hard and intelligently to find (and keep) the right buyers for our clients and we enjoy that. We hope that the rest of the year will reflect the seasonal trends of a more balanced market.”
To search for properties for sale visit Fenn Wright’s website. They have new instructions in Chelmsford, Witham, Colchester town, Stanway, Manningtree, Ipswich and Kesgrave areas.