According to a recent article by Rightmove and The Guardian UK first time buyers hoping to pick up a bargain after the Brexit vote could be in for a shock with figures showing new sellers in England and Wales asking 3.3% more for typical starter homes than a month ago.
The latest monthly report by property website Rightmove showed asking prices for newly listed homes were 0.7% higher – now an average of £306,499 – September than in August. However, the headline rate masked a sharp jump in the price being asked for properties with two bedrooms or fewer. While in August, sellers bringing such homes on to the market asked an average of £188,237,Rightmove said the latest listing price averaged £194,477.
“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,” said Miles Shipside, director at Rightmove.
Asking prices had dropped following the UK’s vote to leave the EU, but recent data has suggested the return of confidence to the market. Recently the Royal Institution of Chartered Surveyors (Rics) said its members were expecting house prices to rise over the next three months. Rightmove said that visits to its site in the first week of September were 8% higher than in the same period in 2015.
- Price of property coming to market rebounds by 0.7% (+£2,277) after falling 2.0% over previous two months
- First-time buyers in danger of being marooned by rising prices cutting them off from home-ownership
- Monthly jump of 3.3% (+£6,240) in price of newly-marketed property with two bedrooms or fewer
- New seller asking prices now almost £20,000 (+10.5%) higher than a year ago in this sector
- Higher prices mean higher deposits and repayments, negating the benefits of falling mortgage rates
- Broadly positive picture overall as the market continues to shake off post-Brexit vote uncertainty
- Seven out of 10 regions see asking price rises or standstills this month, compared with eight falls last month
- First full week of September sees visits to Rightmove up 8% on same period in 2015
Source: Rightmove September 2016