Slight growth in house prices in July: Rightmove


It was a stronger performance than the previous month, which witnessed a fall of 0.4 per cent, and a significant improvement on the 0.9 per cent fall that came in the wake of the European Union referendum result in July 2016.

Property experts believe that buyers have hit their price ceiling as double-digit house price growth has far outpaced wages over the past five years.

Miles Shipside, Rightmove director and housing market analyst says: "House price rises are muted despite high housing demand, indicating that we have left the stage of the cycle where price rises exceed the rate of inflation".

'Having said that, the historic under supply of the right property at the right price and ongoing strong housing demand are evidenced by buyer enquiries to agents picking up to a degree after the surprise election result.

The price of newly marketed property has reached a virtual standstill as affordability constraints put the brakes on spending.

Monthly house prices went up 0.1% from the previous month, taking the average price of a property up to £316,421.

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The biggest monthly falls were recorded in the North East - where prices dipped 1.3% - and Yorks and Humber - where prices fell 1%.

Asking prices for houses and apartments in England and Wales stabilised after a drop in June, but home-buyers remain cautious as wage growth falls behind inflation, a survey by property website Rightmove showed on Monday. "Sellers coming to market at this time of year have to price more keenly as the traditionally bubblier spring selling season is over and prospective buyers are distracted by their own summer holiday plans", said Shipside.

Seasonal slowdownThe data from Rightmove, which tracks asking prices rather than completed sales, also shows a seasonal stall in month-on-month price growth as we enter the summer holiday season.

Compared to the period around the referendum a year ago, more sellers have come to market and more buyers are buying, Rightmove found, with the number of sales agreed up by 4.6% in June 2017 compared to June 2016, and the number of sellers coming to market is also up 7.6% on the same period a year ago. "High demand will continue to underpin prices, but we are seeing stretched affordability limiting the pace of rises, especially in the south of the country".

As the fundamentals of the housing market remain good, the online property experts said, this had led to the number of sales agreed numbers remaining nearly identical to those in 2016, with many parts of the country seeing as high a proportion of properties marked as sold than at any time in the last seven years.

This is the highest proportion ever recorded by Rightmove since we started tracking it seven years ago.