Rightmove: House prices fall by 0.9% after Brexit

Ryan Bembridge

July 18, 2016

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House prices fell by 0.9% (£2,647) after the EU Referendum result, the Rightmove House Price Index for July has found.

However Rightmove’s director and housing market analyst Miles Shipside reckoned this is within the usual range seen at this time of year, meaning the housing market has remained steady after the Brexit vote.

Enquiries were 16% lower than last year, although the same period in 2015 benefitted from a post-election boost, while 6% more properties came to market in the fortnight after Brexit compared to a year ago.

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Shipside said: “As far as the price of property coming to market is concerned, the fall of 0.9% is within the range that we have seen at this time of year since 2010.

“With the onset of the summer holiday season new sellers typically price more conservatively and the average drop in the month of July is 0.4% over the last six years.

“Perhaps unsurprisingly this July’s fall is marginally larger, as political turbulence has a track record of unsettling sentiment.

“Indeed last year saw a seasonally unusual 0.1% fall in the run up to the May election, and a June and July price surge as a result of the post-election boost. Average new seller asking prices were up by 3.1% over that two-month period.”

Jeremy Duncombe, director, Legal & General Mortgage Club, said: “Given the uncertainty that has followed the UK’s decision to leave the EU, it’s not surprising that house prices have decreased month-on-month for the first time in a while. We need however to look at the annual trend and not a month in isolation. House prices are still rising faster much than inflation over a 12 month period, and a slowing of this growth is not necessarily a bad thing.

“It’s clear that demand for property still exceeds the housing supply on offer, just as it did before the Referendum.

“The recent report from the House of Lords calling for 300,000 new homes to be built per year will provide some much-needed pressure in this area. However, we will have to wait and see how the new Government plans to address the housing crisis in the UK, and the steps they are willing to take to ensure that more people have the chance to own their own home.”