The latest figures on property prices from Rightmove have been released for June 2017 showing that the number of agreed sales is the second highest in ten years, only a little lower than the figures from May 2014.
Property in the East Midlands enjoyed the largest increase year on year, up +5.1% to £208,127 as well as a +1.3% jump month on month from £205,453. It is followed by the East of England, where property rose by 3.8% annually and +0.6% monthly to £351,276 in June 2017.
Greater London is the only region that experienced a drop both annually and monthly by -2.4% and -1.4%, respectively. The average property value in the capital sits at £634,321, down from £649,864 the month before. Although the South East is did not suffer two negative price drops, the monthly change sits at -0.9% at £422,904 from £426,767 in May 2017. The region did redeem itself with a +1.8% increase year on year.
The Northern property market has seen an impressive increase of +11% in annual sales agreed, compared to only a +3% rise in the South. In addition, the first time buyer sector is up +3.5% month to month and +5.5% annually.
The price of property coming to the market has seen a -0.4% (-£1,172) drop for the first time this year and for the first time in June since the market crashed in 2009.
Encouraging signs that seller interest at least has picked back up following June’s election. Although the current parliamentary situation is far from strong and stable, we’re already seeing elections blues sidelined and the market return to a semblance of normality now that some of the dust of political uncertainty has started to settle.
We saw a similar hangover from the EU Referendum in which the market took a good month or so before kicking back into action. It is likely that should these figures ring true, we could see a reverse in the cooling price trends reported over the last month or so, but this heightened seller activity must be matched on the buyers’ side of the market in order for this to happen.
After all, Rightmove’s data is based on listed stock and asking prices and is just a mere toe dip into the UK property market pool and it doesn’t necessarily portray the overall temperature of the market.Russell Quirk