The latest house price index from Rightmove, which analyses the average asking prices that UK sellers are listing their property on the website for, has revealed that there has been a 2.6% fall in December compared to the previous month, which equates to an average of £8,000 per property. It’s the largest monthly fall in five years, but there are regional variations with the North East actually seeing an uplift in prices of 1.3%.
Rightmove is predicting that asking prices will grow by just 1% over the coming year, the lowest on record since 2011 if its predictions are correct.
Patrick McCutcheon, Head of Residential Sales at Dacres says: “The latest index from Rightmove may have created negative headlines, but it’s important to remember that the data is based on the asking prices of properties coming onto the market, not the price they actually sell for. The dip may look significant, but December is always a muted month for the property market. Other indices, like the Land Registry, which is based on sales completed, don’t paint such a negative picture of the market and in fact show positive movement in the market.
“There is no doubt 2017 has been a steady year, but we expect to see modest, single figure price growth in Q1 and Q2 of 2018 across the Yorkshire region, which will in part be driven by a continued lack of supply. With buyer demand arguably stronger across Yorkshire’s prime areas spanning Leeds, Ilkley, Harrogate and Wetherby.
“Although external influences such as Brexit continue to make the headlines too, ultimately this shouldn’t determine whether people decide to move home or not, especially because mortgage finance is still economically sensible, even with November’s 0.25% base rate increase factored in. This is also good news for first time buyers, particularly when it’s combined with initiatives such as Help to Buy and the recent stamp duty relief.”
To read the full report visit http://www.rightmove.co.uk/news/house-price-index/