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Selling prices fell slightly in July as house sellers tried to lure buyers ahead of the summer holidays, figures on Monday showed.
Rightmove’s House Price Index showed the average asking price fell 0.4% £373,493 in July, a bigger drop than the 20-year July average of minus 0.2%.
The online property website said the fall came as sellers try to capture the attention of buyers with a more tempting price heading into the thick of the summer holidays and the Olympics.
‘Home-movers are dealing with more diversions than normal at this time of year, having just come through the distractions of the General Election campaign and the Euro football tournament, but prices remain stable overall at 0.4% higher than a year ago,’ Rightmove said.
The survey showed the general election had little impact on the housing market with people getting on with their moves.
‘The political certainty of having the next government in place is likely to aid home-mover confidence heading into the second half of the year,’ Rightmove added.
Of more pressing concern to home-buyers is when the first interest rate cut will be, with persistently high mortgage rates continuing to test affordability, the report noted.
Rightmove‘s Director of Property Science Tim Bannister said: ‘Some good news for home-movers is that the financial markets expect that the first base rate cut will be in August or September.
‘A base rate cut is expected to lead to lower mortgage rates, which could be the gamechanger for some would-be home-movers who are being held back by significantly higher monthly mortgage costs. The average five-year fixed rate is still nearly twice as high as it was before the first of 14 consecutive Bank of England rate increases in 2021, with rates staying elevated for much longer than many thought that they would. A first base rate cut for over four years, together with the new political certainty, could set the scene for a positive Autumn market, with improved affordability and a more confident outlook in the second half of the year.’
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