Portfolio

House prices are not falling, finds Rightmove

By Oliver Haill

Date: Monday 22 May 2017

House prices are not falling, finds Rightmove

(ShareCast News) - House prices rose for the fifth month in a row in May, according to a new survey that runs counter to recent industry research based on sale completions.
Rightmove found that new homes coming onto the market were selling for an average 1.2% more than the month before, when there had been a 1.1% monthly rise but was slower than the 1.3% and 2.0% in March and February.

The average British home sold for £317,281, the research found, a new record.

But the volume of sales in the year to date is down 2% on last year, though 2016's numbers benefitted from a rush in the buy-to-let market before additional stamp duty was imposed. Numbers were up 2% than the same period in 2015.

Right move found home-owners with children aged under eleven helped keep the market moving, as they were found to be twice as likely as the average person to move home.

"Whilst all-time high asking prices or economic and political uncertainty could be deterrents to would-be home-buyers, this month shows another strong set of figures," said Rightmove director Miles Shipside.

"Demand is exceeding supply in many parts of the country and continues to push up the prices of newly-marketed homes. Spring is in the air and home movers are springing up the housing ladder."

The Rightmove research comes not long after research from Halifax found house prices dropped for the first time in three months in April and official data from the Land Registry revealed UK house prices dropped 0.6% month on month in March, with many experts feel they are likely to continue falling as the housing market is hit by a softening consumer environment and sterling volatility that erodes the appeal for overseas investors

Russell Quirk, CEO of online estate agent eMoov.co.uk, said: "Interesting that Rightmove should have observed no wobble in the market where asking prices are concerned, despite the industry indices based on sale completions stating otherwise.

"This would suggest that UK buyers are still sitting tight despite a marginal cool in market demand and are yet to reduce their price expectations. Overall, the predominant air of confidence seen in the market over the last year from UK home sellers seems to be persisting and this, in turn, should see price growth stabilise," he said.

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