Property market update for June
It was a historic month in June as the UK voted to leave the European Union. In the months that lead up to the referendum, there was a level of uncertainty in the marketplace. Despite this, property portal Rightmove reported that the average UK house price rose for the sixth consecutive month.
It appears momentum from the surge in deals during the first quarter of the year has so far allowed prices to remain resilient and suppressed any initial backlash of the decision to leave the EU. In June, there was a marginal increase in asking prices of 0.8% up £2,320 on the previous month which led to yet another record average UK house price of £310,471.
In the North West the property market stayed particularly strong. House prices saw an increase of 2.2%, nearly three times the national average, up £2,992 from May’s £179,490 to £183,482. To date house prices in the region have seen a 4.2% increase, year on year.
The National Association of Estate Agents (NAEA) has predicted the decision to leave will most likely be felt more in the South than in the North. They predict that the average UK house could drop £2,300 by 2018, however in London this drop could be as much as £7,500.
While June’s figures might indicate there has not been an immediate impact from the decision to leave the EU, there were signs of referendum associated uncertainty in June. Rightmove reported that the number of new properties coming to the market was down 5.3% on the monthly average for June since 2010.
One consequence of the lack of supply has been a new record for the average number of days to sell a property. Rightmove reported it took on average 57 days from a property coming to market, to being marked as “sold subject to contract” by the agent. This a reduction from 60 days in May and 65 days at this time last year. Demand is still high and the lack of supply is leading to offers being agreed faster.
At homes4u our sales teams are as busy as ever and it really is business as usual. We continue to receive enquiries from buyers and the level of valuations and instructions has stayed constant.