Online property portal Rightmove has revised its annual growth forecast for new seller asking prices to 8%, despite a 0.8% drop in the value of residential property coming to the market in July. Is the “frenetic” activity witnessed in the first half of the year cooling?
The upgrade brings potential growth in asking prices to the top end of Rightmove’s previous forecast of between 6% and 8% made in December 2013. Despite the seasonal drop in prices and Bank of England’s more cautious policy, 2014 is still “the year to move”, it said.
Rightmove commented that while the introduction of new lending rules under the Mortgage Market Review could keep buyers in high loan-to-income brackets away from the market, almost 50% of home movers planning a property purchase in the coming 12 months are “equity-rich third-timers”.
The price of property coming to the market saw its first monthly decline so far this year, prompting a slowdown in the annual growth rate to 6.5% from 7.7%. Miles Shipside, Rightmove’s director and housing market analyst, said the drop was not unexpected as many prospective buyers turned their attention away from the market to focus on their summer holidays. Another factor that served little favour in stimulating the housing market was the World Cup, alongside fears that mortgages are becoming more difficult to get and that payments could get costlier sooner than expected, he added.
Mortgage approvals, meanwhile, are still hovering around an average of more than 60,000 a month, or 23% more than in the same period last year and 40% above the 2008-2012 monthly average, Rightmove noted.
Are you planning on taking this advice and choosing 2014 as your “year to move”?