According to Rightmove’s August house price index, the price of property marketed in the last four weeks is 1.2% (-£3,602) lower than the previous month.
The firm noted that while it is usual for sellers who come to market in the summer holiday season to price more cheaply, there have only been larger drops in two of the last six years since 2010.
With the timing of Brexit uncertainty coinciding with both the seasonal slowdown and continuing the lull following the first quarter buy-to-let surge, Rightmove believes 2016 will be a year of two halves. How different they are will depend upon the strength of the traditional market rebound this autumn, especially at the upper end of the market and within the London commuter belt, which currently appear to be the most subdued, it added.
Miles Shipside, Rightmove director, said: “Many prospective buyers take a summer break from home-hunting, and those who come to market at this quieter time of year tend to price more aggressively. This summer is also affected by both Brexit uncertainty and the aftermath of the buy-to-let rush in March to beat the stamp duty deadline. Most sellers seem to recognise that buyers may want some extra encouragement to get them to put their towel on a property to reserve it as well as on their subbed.
“The average fall in new seller asking prices at this time of year has been 1.2% over the last six years, so this month’s fall is exactly in line with the long-term average. The largest price falls at this time of year were -2.0% and -1.3% in 2014 and 2010, with the smallest fall being -0.8% in post- election boosted 2015.”
Jeremy Duncombe, director of Legal & General Mortgage Club, added: “July has been an interesting and unpredictable month following the UK’s decision to leave the European Union. The reality is however that not much has really changed, and the underlying housing market continues to remain strong due to a combination of low rates, high demand and lack of supply. Apart from small pockets of the country, house prices are still rising – even if slower than before.
“The housing market clearly needs to change, as house prices are relentlessly outstripping wage inflation. It is high time that we put in place a revolutionary housebuilding programme that will help to bring increases in house prices back in line with that of wage inflation. It is up to our new government and housing minister to start putting plans in place to build the 300,000 new homes each year that we have been promised.”