New figures from Rightmove suggest that the first indications of a slowdown in housing market activity are apparent, although the number of property transactions remains high.
According to this data, the rate of growth in UK house prices for June is 0.8%, which is a significant decline from the figure of 1.8% for last month. The company is stating that this could be the earliest indicator of a drop in the frantic levels of transactions and price increases that have been seen over the past few months, but it also pointed out that the growth figure for June was the largest for that period since 2015.
Furthermore, there was another monthly rise in the average price of a UK home, by £2,509, taking it to £336,073. House prices have hit record levels across every UK country and region right now, but transactions are beginning to slow down due to housing demand outstripping supply.
Speaking to Mortgage Strategy, the Property Data Director for Rightmove, Tim Bannister, stated that:
“Buyer demand remains very strong, though with an all-time low in the number of properties available for sale on estate agents’ books and new stock at higher than ever average prices, there are early signs of a slowing in the frenetic pace.”
It is not possible to compare housing market figures with those of this time last year, as the Rightmove index was paused during the 2020 lockdown.
Advisors will need the know-how they have gained during their CeMAP courses to find deals for their clients during this situation.