First-time buyer asking prices nearing £200,000 mark

Ryan Bembridge

September 19, 2016

house price growth august

First-time buyer asking prices are nearing the £200,000 mark after rising by 10.5% annually and 3.3% on a monthly basis.

It was thought a Brexit vote may lower prices, but The Rightmove House Price Index put the typical asking price at £194,477 in September, up from £188,237 in August 2016.

The overall cost of properties coming to market jumped by 0.7% in September to £306,499 after falling by 2.0% over the previous two months.

Miles Shipside, Rightmove director and housing market analyst, said: “Some of those trying to get onto the property ladder may have wistfully listened to speculation of lower prices in a post-Brexit Britain.

“While the referendum result has created additional downwards price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are now finding it harder to achieve their goal in the post-Brexit-vote aftermath.

“In their favoured target sector with two-bedrooms or fewer average asking prices have jumped by over £6,000 in the last month as we enter the typically active autumn market.”

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Today’s results from Rightmove show a slight softening in house price inflation. But it’s important to be clear that prices are growing less quickly, not falling.

“This shouldn’t distract us from the real truth behind these figures though. House prices are continuing their unstoppable climb to overwhelming, and for many aspirational first time buyers, unreachable heights.

“The government can hopefully use the Autumn Statement to deliver a clear plan of action which prioritises the need to boost the supply of affordable homes.

Steve Griffiths, director of sales and distribution at The Northview Group, added: “Despite all the talk of uncertainty surrounding the British economy, these figures clearly show that the demand for housing remains strong.

“House price inflation may have seen a softening in recent months, but it’s important to realise that the price of property is still on the increase.

“The buy-to-let market in particular continues to see growing demand from buyers, particularly in high demand areas like London and the South-East.

“In such a competitive environment, buyers are constantly on the lookout for lenders that are breaking the mould and using the latest technology to align their competitive rates with improved speeds and certainty.”

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