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House prices drop amid market uncertainty

New research carried out by the Daily Mail suggests that house prices have fallen in recent months. The drop has been attributed to the uncertainty caused by Brexit, which has resulted in wavering levels of demand. This news will cause concern for those thinking of selling up, but will equally be welcomed by those wanting to get onto the property ladder.

The Daily Mail research shows that one house seller in three has had to cut their asking price. Those who listed their homes on a leading property website reduced prices by an average of 6 per cent in August, but in some cases they have slashed them by as much as half since their first listing.

These figures must be taken with a pinch of salt. They could be a result of sellers listing their houses with unreasonably high asking prices, rather than a cooling of the market. However, the figures are backed up by Nationwide, Britain’s biggest Building Society, who have published figures stating that the average price of a home fell 0.1% between July and August 2017 to £210,495.

Despite this recent blip, it is likely that house prices will continue to rise, on an annual basis. Although prices have fallen in recent months, the annual rise in house prices still stands at 2.1%.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, commented that the slowdown in house price growth reflected the squeeze on real wages (adjusted for inflation) and the slowdown in the pace that mortgage rates are falling.

Author: Chris Proctor

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