According to Rightmoves latest report it has revealed that average new asking prices are close to a record high, up 0.3% on a monthly basis at £309,348.
- New all-time price highs in the east midlands, north west, Wales, and Yorkshire & the Humber.
- Property supply and sales are sliding further as buyers continue to play their waiting game.
Miles Shipside, Rightmove director, comments:
“With the country supposedly consumed by the twists and turns of Brexit, it’s surprising that the price of property coming to market is within a whisker of setting a new record. At £91 below June 2018’s figure of £309,439, it’s within touching distance of the previous high. More buoyant markets in the north and midlands are helping to nudge up prices due to the seemingly relentless strength of buyer demand. Buyers in four regions are seeing higher new seller asking prices on average than ever before.”
The regions setting new all-time price highs are the East Midlands, the North West, Wales and Yorkshire & the Humber. These regions are also outperforming the national average in the key metrics of number of properties coming to market and the levels of sales agreed so far in 2019. At the mid-point of 2019 new seller supply remains constrained nationally, down by an average of 5.0% versus the same period in 2018.
The national trend sees new seller supply down by an average of 5% so far this year compared to the same time last year, indicating some hesitancy on the part of would-be sellers, especially notable in parts of the south. However, these better-performing northerly regions are all beating that national average. In the East Midlands, new seller supply is up by 0.3%, in Yorkshire & the Humber it’s down by just 0.2%, in Wales it’s fallen by 2.5% and in the North West it’s dropped off by 2.7%.”
“The national market faces a range of challenges, with overall average asking prices barely changed from last year, and activity levels slightly lower. Some buyers are hesitant due to the long-drawn-out uncertainty of Brexit, and there is also a slight tightening of mortgage availability and stretched buyer affordability, especially when it comes to raising a deposit.
There is however a marked north/south divide as all northern regions are selling better than those in the southern part of the UK. On average the number of sales agreed for the year to date in the northern regions is down by 1.7% compared to the same period last year, while success at selling is more elusive in the southern regions which are down by an average of 7.1%. To sell in these more difficult locations you have to undercut the asking prices of similar properties, and preferably have a well-finished and expertly marketed home that will all combine to stir hesitant buyer interest.”