The property market has bounced back following a dip in the market as a result of the decision to leave the EU, new figures show.
According to property website Rightmove, the average price of property coming to market in the last month has risen by 0.7% to £306,499.
This rebound comes after a fall of 2% seen over the previous two months.
However, the news is not so good for first-time buyers who may have felt encouraged by the lull in prices post-Brexit.
Homes with two bedrooms or fewer, which are typically bought by first-time buyers, have gone up £6,240in the last month and £18,450 over the past year. This takes the price of a typical first-time buyer property to £194,477.
Miles Shipside, Rightmove director and housing market analyst, said: “Some of those trying to get onto the property ladder may have wistfully listened to speculation of lower prices in a post-Brexit Britain.
“While the referendum result has created additional downwards price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are now finding it harder to achieve their goal in the post-Brexit-vote aftermath.”
In the run-up to April’s 3% stamp duty hike there was a boom in borrowing as buyers brought forward transactions to beat the deadline, putting upwards price pressure on the first-time buyer sector.
Rightmove said that buy-to-let landlords heavily concentrated on buying up smaller homes as a long-term investment typically do not sell as often.
Shipside warned that the rising tide of prices is marooning more and more first-time buyers, out-stripping their ability to meet stricter lending criteria and afford the required deposits and monthly repayments.
He said: “Increasing numbers are being cut off from home-ownership altogether and while schemes are in place to help, the additional demand they create is not matched by available and affordable supply. With an average rise of over 10% in prices of typical first-time buyer properties over the last 12 months, minimum entry prices in some locations will go above what lenders are able to lend to most aspiring first-time buyers.
“Ironically the post-referendum uncertainty has made some sellers of larger and higher value homes more willing to negotiate, making it easier for those already on the ladder to trade up. There appear to be no such positives at present for those hoping to get onto the property ladder, especially as agents report more investor activity attracted by better returns than available elsewhere.”
The largest monthly rise was in London, where house prices went up 1.9% to £630,974.
Wales saw the biggest the biggest monthly drop, with prices dropping 1.9% to £177,077.
House prices remained static in the North East, the West Midlands and the South West, while prices rose in the South East, the East Midlands and the East of England.
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