Brian Murphy Head of Lending for Mortgage Advice Bureau comments:
“The monthly Rightmove House Price Index provides us with an up to date ‘litmus test’ of consumer sentiment and activity in terms of the UK property market, rather than historical data using completed transaction figures. This month’s report suggests that asking prices have flattened in many parts of the UK, partly as a result of the distractions of sunshine and major sporting events, but also as the disparity grows between what vendors believe their property is worth at first listing, and what the market will actually stand. That said, it’s good to see that average stock levels over the last few weeks per agent have increased, as fresh supply will widen buyer choice in many areas, and hopefully get markets moving where there’s been stagnation over the last few months. The number of sales agreed is consistent on last month too, which is consistent with recent lending data that points to a modest increase in home mover mortgages during the second quarter of the year.
However, properties will only sell if the price is right, and the Rightmove report suggests that asking prices are still in the region of being at their highest for five years. Against that context, vendors would perhaps be well advised to be realistic about their expectations. This isn’t just to ensure that they attract a buyer within a reasonable period of time, but also to avoid the issue of the property being undervalued at mortgage survey stage. As it stands, consumer confidence currently appears to be holding steady, despite ongoing Brexit headlines, which stands us in good stead for the next couple of month across the height of the summer holidays.”
Read the full report here.