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UK house prices suffered a marginal fall this month, the first June decline since 2017, according to a Rightmove tracker.
Average new seller asking prices fell by just £82 in June to £372,812 from £372,894. Prices had risen 1.8% in May from April.
Though fractional, June’s outturn was the first monthly drop in asking prices this year. It was the first June fall in house prices since 2017.
The outlook for house prices is less-than-stellar too, Rightmove predicts. The property portal expects asking prices to fall in most months for the rest of the year, in line with season patterns. Rightmove still predicts UK house prices to decline by 2% over the whole of 2023.
Mortgage rates have increased recently, though Rightmove noted buyer demand has not been hurt. Demand over the last two weeks was 6% higher than in pre-pandemic 2019.
The average rate for a five-year fixed 85% loan-to-value mortgage sits at 5.2%, Rightmove said, stretching from 4.6% four weeks ago. An LTV ratio is the amount a house buyer borrows against the amount they put down as a deposit. All eyes will be on the upcoming Bank of England decision on Thursday.
Threadneedle Street is once again expected to lift rates by 25 basis points next week. It would take the benchmark bank rate to 4.75% from the current 4.50%.
‘Agents report that new sellers are sitting in two camps those who still have overoptimistic price expectations following the buoyant pandemic market, and those who have adapted to the new conditions and are coming to market with a competitive price. Sellers who price competitively are much more likely to find a suitable buyer quickly before their home appears stale, and they can often then negotiate on price on any onward purchase,’ said Rightmove analyst Tim Bannister.
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