House prices set to rise by 1.2%

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After a busy Spring market house prices in England and Wales are set to rise by 1.2% over the next three months, the reallymoving House Price Forecast has found.

This follows on from a more resilient than expected Spring market. There was substantial monthly house price growth in June, which saw average prices in England and Wales increase by 6.5% compared to May.

Reallymoving said buyers and sellers who adopted a ‘wait and see’ approach are now trying to get their deal done before the 31 October deadline, as with a no deal Brexit looking more likely, it’s feared house prices could undergo significant adjustment.

Rob Houghton, chief executive of reallymoving, said: “The spring market was more robust than expected and this has prompted positive growth through the summer, particularly for deals agreed in May which are translating to sale prices in August.

“The chance of us leaving the EU without a deal seems increasingly likely and people are realising that the window between now and the end of October may present their best opportunity to sell.

“The market has proved itself to be surprisingly stable over the last twelve months but this could change if we crash out of the EU on Halloween.

“Annually prices are on an upward trajectory from June through to September, when they are forecast to end the summer 3.8% higher than in September 2018, but the longer-term outlook remains uncertain.

“There is huge pent up demand in the market, however, and if the UK is able to agree a deal with the EU we could see a rush of properties hitting the market in the late autumn along with a surge in buyer demand.

“A mixed picture remains regionally, but there are twice as many regions forecast to see price growth over the summer than price falls, with particularly strong performances in Wales, Scotland and Northern Ireland.”

Average values are set to remain relatively stable in July, dipping by just 0.5%, followed by a surge of 3.2% between July and August.

Annually, property values fell consistently between January and May 2019, but as predicted, this trend reversed at the start of the Summer when prices increased by 2.3% in June compared to 12 months previously.

Annual growth is forecast to remain in positive territory through the summer, with a 0.7% annual increase forecast in July, followed by 1.2% in August and 3.8% in September.

The forecast figure for September represents the strongest annual growth seen for 10 months, since the previous peak of 4.3% growth in November 2018.

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