A shortage of properties is continuing to affect the housing market as new figures reveal a slight dip in prices since last month.
According to the latest data from Halifax, house prices fell in June by 0.3% compared to the previous month.
However, in the three months to June they soared by 5.7% when compared to the same period the previous year. It means the average house price is currently £237,110 according to the Halifax House Price Index.
Halifax offered reassurance the market was displaying a ‘reasonable degree of resilience’ amid the current political and economic uncertainty.
Few homes for sale
Russell Galley, managing director said demand for property was ‘more stable’ and the number of mortgage approvals was just above the long-term average.
But, he explained, one of the main factors restricting growth was the fact there were so few homes on the market for sale.
He said: “With the ongoing lack of clarity around Brexit, people will be looking for more certainty in the coming months, both to encourage them to list their property and to create the confidence needed to encourage buyers.”
Estate agents on the ground report a similar trend, revealing many would-be sellers have continued to put their plans on hold until after Brexit.
Reducing asking prices
But those are who are selling are also having to make compromises, according to Jonathan Hopper, managing director of Garrington Property Finders.
He explained: “Sellers in the south east of England and London have had to recalibrate asking prices, and in the weakest markets we’re seeing homes change hands for as much as 30% below the original guide prices.”
He added: “Yet in much of Britain the market has come to accept uncertainty as the new normal, and in areas where buyers detect good value, prices are still nudging upward.”
