UK asking prices fall for the first time in 8 years nationwide

UK asking prices fall for the first time in 8 years nationwide [Photo: merron via iStock]

Asking prices have fallen on a monthly basis for the first time in eight years, according to a new study, which suggests a drop in confidence is currently taking place nationwide. 
Data published by property portal Rightmove this week found that, over the past month between May and June, there was an average drop in asking price for properties of around 0.4 per cent. It was the first time that there had been a decline in asking prices in monthly terms since the same time of year in 2009. 
On an annual basis, there was also a slight fall in June, but asking prices still remain higher than they did a year ago in spite of this. However, the 1.8 per cent growth in asking prices experienced over the last 12 months represents a fall from the three per cent annual growth that was recorded just a month before. 
Rightmove's director and housing market analyst Miles Shipside believes that the fact this is the first time for eight years there has been a decline in asking prices shows that there is a certain degree of confidence dropping because of what people are seeing in the news. 
"The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events."  
"It now seems certain that we will have continuing political uncertainty, which the housing market traditionally dislikes, and with the first fall in June prices for eight years there is no doubt that the lack of stability is a factor," Mr Shipside said. 
The good news is that even though seller confidence may be down at the moment, demand in the housing market is not particularly so. According to the Rightmove data for June, there were seven per cent more completed sales in June than at the same point in 2016. In the north, this trend was even more prominent, with 11 per cent growth over the same time a year ago.