House prices fell in June, continuing to slide for the third month in a row with average values now down £2,358 in the last quarter, according to the latest housing price index from LSL Property Services/Acadata.
The report found that more than half the unitary authority areas in England in Wales – 60 out of 108 – reported prices falling over the month. The average price in June was £301,114, down 0.2% on May.
Despite this, the broad trend over the last year remains a modest rise, and prices are still 3.8% or £11,037 up on this time last year. The East of England, particularly, continues to show strong annual growth, regaining its top spot among the regions. In London, Westminster sets a new peak price, up 19.7% annually to reach £1,865,843.
The slide in house prices has coincided with the period since the calling of the general election in April, but it is not the sole cause. The surprise announcement in April was mid-month, too late to have any real impact on sales. And at the time, the result looked in little doubt.
Instead, the election and its result have merely exacerbated a slow-down in price growth that can be seen since the beginning of the year.
The report said that predictions of a sustained correction still look premature, however. First, we’ve seen before that the market can rally, as it did a er remaining at for three months following last year’s referendum. Second, mortgage rates remain
low, helping buyers. And, finally, transaction levels in June were encouraging, with an estimated 72,500, up 10% on May, marginally ahead of the increase expected, albeit with levels lower than last year.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “Don’t write the market off just yet. We’ve seen three months of falls, but it’s far too early to panic. Mortgage rates are still affordable and the slow down we have seen will already have helped some buyers struggling with affordability.
“We’re still seeing strong growth in the East and in prime London. We’re also seeing a return to the North-South divide in terms of price growth. In many ways, it feels like we’ve been here before.”