Average new seller asking prices drop by 0.4% (-£1,617) this month to £373,493, a bigger July drop than usual, as new sellers try to cut through the distractions of the General Election, sporting events and summer holiday season with a tempting price.
Market activity has remained steady throughout the General Election campaign, and though there are signs that some would-be movers are waiting for the first Bank of England Base Rate cut, most are continuing with their moving plans.
The number of sales being agreed remains encouraging at 15% above the same period a year ago, when mortgage rates were approaching their peak. While the number of new sellers coming to market is a steady 3% above last year.
Guy Gittins, CEO of Foxtons, says: “As expected, the housing market has stood firm despite the political uncertainty of a looming general election, even though a marginal reduction in asking prices suggests a point of consideration amongst some buyers and sellers. Thankfully, England’s EURO 2024 progress does not seem to have been a similar distraction.
“It’s already abundantly clear that now the political dust has settled, the post-election market is seeing a notable increase in activity in the few short days that have followed.
“It’s now a case of ready, set, go for the nation’s buyers and sellers and we expect market momentum to continue to strengthen over the summer, especially with the prospect of a rates cut due in September which could release even more pent up buyer demand – particularly at the one million pound and above price threshold.”
CEO of Yopa, Verona Frankish, commented: “There’s been a great deal of noise distracting homebuyers and sellers from keeping their eyes on the prize in recent weeks, from injury time and penalty drama at the Euros, to the general election. So it’s promising to see that despite these distractions, asking prices have remained largely unchanged and market activity has held firm.
“Given this continued display of strength, we largely expect that a summer of sustained house price growth is now on the cards and this will only increase as the reality of a base rate cut looms ever closer.”
Ruth Beeton, Co-Founder of Home Sale Pack, had this to say: “Although the impact of the election was always going to be minimal and momentary, it does appear to have caused some sellers to hold fire in the lead up to polling day.
“However, those sellers are best advised to act now if they do want to make their move this year, as we expect the market will now be hit with a considerable surge in activity over the coming months and this will inevitably cause delays to transaction timelines.”
Director of Benham and Reeves, Marc von Grundherr, commented: “Whilst England’s late run of form to reach a Euros final may have come as a surprise to many, the property sector has been largely predicting the continued resilience of the housing market for many months now.
“A brief dip in asking prices will do little to slow the momentum that has built so far this year and with the election now behind us, it’s shaping up to be a sizzling summer where property market performance is concerned.”
