Average asking prices fell for the first time this year with confidence hit by rising inflation and political uncertainty, Rightmove said this morning.
It said that prices of property coming to market declined by 0.4% between May and June, the first time there has been a decline at this time of year since the height of the credit crunch in 2009.
Average asking prices for June were £316,109, up 1.8% annually.
Typical first-time buyer property prices rose by the most annually during June, up 5.5% to £199,943, while second stepper homes increased 2.7% to £268,685. Homes at the top of the ladder rose 1% annually to £566,515.
While prices were down, Rightmove says the number of sales agreed in May was up 7% on a monthly basis, the second highest for the month, other than in 2014, for ten years.
Time on the market fell on average during May to 59 days from 60 in April, but is longer than the 57 recorded in May last year.
Average stock increased in May to 60 properties on average, up from 57 in April.
Miles Shipside, Rightmove director and housing market analyst, said: “It now seems certain that we will have continuing political uncertainty, which the housing market traditionally dislikes, and with the first fall in June prices for eight years there is no doubt that the lack of stability is a factor.
“The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events.
“However, demand is still high and markets in some parts of the country seem to be getting used to coping with instability and are still strong.
“The high levels of sales being agreed show that the underlying fundamentals are largely unchanged with high first-time buyer demand which drives movement higher up the ladder, all aided by the cheap cost of borrowing.”
Free Property Ad – Reach millions buyers & tenants
Mortgages – Find cheapest rates from 0.98%
Landlord tax – How to save £1000s using a company
Broadband & TV – Compare Sky BT Virgin & Plusnet
Gas & Electric – Save up to £600+ in 10 minutes
|Mortgages - Find cheapest. Rates from 0.98%. 1st time buyers, remortgages, self-employed, adverse & CCJ, Landlord buy to let. Compare now|
|Sell or Let Property FREE on Houseladder 0% no fees. Free property advertising. List 1 to 1000 properties to millions of buyers and tenants. Upgrade to a Premium advert for only £30 and sell or let your property FASTER! Create Ad|
|Make Money - Earn £250 to £2000+ per month part time. Get paid every month for work you do once. Work from home. Flexible hours. Free training. No experience needed. Major UK PLC company. Find out how >>|
|How To Save Property Tax - Updated Sept 2017 “How To Save Property Tax” is widely regarded as THE tax bible for property investors. The 21st edition has just been published (Sept 2017) and is completely up to date. Read now|