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Average price tag on a home fell by £1,617 month-on-month in July – Rightmove

The price fall was bigger than usual for July, with the distractions of the General Election, sporting events and holidays, Rightmove said.

Vicky Shaw
Monday 15 July 2024 00:01 BST
The average price tag on a home has dipped by more than usual for the month of July, Rightmove said (Steve Parsons/PA)
The average price tag on a home has dipped by more than usual for the month of July, Rightmove said (Steve Parsons/PA) (PA Archive)

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The average price tag on a home has dipped by more than usual for the month of July, according to a property website.

Across Britain, the typical new seller asking price fell by 0.4% or £1,617 month-on-month in July to £373,493, down from £375,110 in June, Rightmove said.

This was a bigger drop than the typical fall seen in July, according to the website, as new sellers tried to cut through the distractions of the General Election, sporting events and the summer holiday season.

The average price drop in the month of July over the past 20 years has been 0.2%.

The number of sales being agreed and new sellers coming to market is higher than a year ago, Rightmove said.

Tim Bannister, director of property science at Rightmove said: “Three major uncertainties hanging over the property market at the start of the year were when the first interest rate cut would be, and the timing and the result of the General Election.

“We’ve now got the political certainty of a new Government with a large majority, which we expect will help home mover confidence.

“It’s very early days, but the new Chancellor’s immediate announcements on housebuilding targets and planning reform are positive signs that the Government is keen to get going with its manifesto pledges.

“With many areas of the market that could be improved, we hope that the new Government is able to get on with its plans and deliver sustainable housing policies that help the market in the medium to longer-term.

“One area of the market in need of more support is first-time buyers, many of whom have been stretched to the limit by high mortgage rates, with some also facing higher stamp duty fees when the current thresholds are set to revert in March 2025.”

Mr Bannister added: “A base rate cut is expected to lead to lower mortgage rates, which could be the game changer for some would-be home movers who are being held back by significantly higher monthly mortgage costs.

“The average five-year fixed rate is still nearly twice as high as it was before the first of 14 consecutive Bank of England rate increases in 2021, with rates staying elevated for much longer than many thought that they would.

“A first base rate cut for over four years, together with the new political certainty, could set the scene for a positive autumn market, with improved affordability and a more confident outlook in the second half of the year.”

Matt Nicol, managing director at estate agent Nicol & Co in Worcestershire said: “Valuations and instructions remain strong, backing up the historical data that shows elections have minimal market impact.”

Nathan Emerson, CEO of property professionals’ body Propertymark said: “Any slight dip in house prices is likely to only be a temporary phase following a period of uncertainty triggered by the recent General Election.”

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