House prices have fallen over £3,600 in the last month following uncertainty due to Britain’s decision to leave the EU and the summer slowdown, new figures show.
According to the latest Rightmove House Price index, the price of property in the month to August fell 1.2% to £304,222.
Rightmove said this was in line with typical drop in prices at this time of year.
While prices have fallen for the month, they are still 4.5% up on this time last year.
The sharpest drop was in London, where property prices fell 2.6% for the month to £635,710. The South East saw a monthly decline of 2.0% to an average of £382,182.
The West Midlands and Yorkshire and Humber both saw an increase in prices for the month, rising 1.1% and 1.2% respectively.
Time to sell in London has increased by five days between May and July, while the South East and the South West are up by four days, and the East of England region is up by three.
Rightmove said 2016 was on course to be a “year of two halves” following a surge in property transactions as buyers rushed to beat the April increase in stamp duty on buy-to-let and second homes.
The buy-to-let surge boosted property transactions to 12% higher than 2015.
Miles Shipside, Rightmove director and housing market analyst, said: “Many prospective buyers take a summer break from home-hunting, and those who come to market at this quieter time of year tend to price more aggressively.
“This summer is also affected by both Brexit uncertainty and the aftermath of the buy-to-let rush in March to beat the stamp duty deadline. Most sellers seem to recognise that buyers may want some extra encouragement to get them to put their towel on a property to reserve it as well as on their sunbed.”
Jeremy Duncombe, director, Legal & General Mortgage Club, said: “July has been an interesting and unpredictable month following the UK’s decision to leave the European Union. The reality is however that not much has really changed, and the underlying housing market continues to remain strong due to a combination of low rates, high demand and lack of supply. Apart from small pockets of the country, house prices are still rising – even if slower than before.
“The housing market clearly needs to change, as house prices are relentlessly outstripping wage inflation. It is high time that we put in place a revolutionary housebuilding programme that will help to bring increases in house prices back in line with that of wage inflation. It is up to our new Government and housing minister to start putting plans in place to build the 300,000 new homes each year that we have been promised.”
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