The housing market remained flat in June, with property asking prices, sales agreed and the number of buyers in the market remaining stable over the month according to the latest Rightmove house price index.
Data from the property website shows that the average price of a house being listed dropped by just £21 in June — statistically giving a zero percent change on the previous month.
This means the average asking price of a property for sale is now £375,110, broadly the same as May, which was a record high. Rightmove says this follows seasonal patterns of prices stagnating at this time of year, with election uncertainty adding to this summer lull.
This national average masks considerable regional differences though. Rightmove says there is stronger growth in northern regions where property prices are lower. Five of the six cheapest regions have reached new price records, while the higher-priced East of England and London lag behind, according to its data.
The announcement of an earlier-than-expected general election does not seem to have caused significant disruption to people’s house buying plans. Rightmove said the only change it has seen is a slight drop in the number of new sellers, particularly at the top-end of the market.
In the last two weeks since the election announcement the overall number of new sellers coming to market is just 1% higher than the same period a year ago. By contrast, during the two weeks prior to this, the number of new sellers deciding to come to market was 6% above 2023’s level, highlighting a drop off in new seller activity towards the end of this monthly period.
Rightmove says this dip is most prominent in the top-end sector, covering the larger four and five-bedroom detached houses. The number of new sellers choosing to come to market in the last two weeks in this sector is 3% lower than the same period a year ago, compared with being 11% higher than 2023 in the previous two weeks.
However, Rightmove said that over the last four weeks the number of sales being agreed has stayed steady, and is now 6% higher than a year ago. Buyer has also remained stable, and is 5% higher than the same period last year.
Separately Rightmove has conducted a survey of more than 14,000 people, which found that the overwhelming majority (95%) of those planning to move home said that the election will not affect their plans
Rightmove said that “stubbornly high mortgage rates” continue to stretch affordability, with many future movers likely to more interested in wen the Bank of England cuts interest rates than pre-election promises about the housing market.
It points out that the average five-year fixed mortgage rate is now 5.04%, compared with 4.94% in January.
Rightmove’s director of property science Tim Bannister says: “It’s always difficult to predict how home-movers will react to sudden uncertainty, but looking back through our data, we can see that during previous election campaigns, market activity has remained largely steady.
“This election has followed a similar pattern so far. However, some potential sellers appear to be watching and waiting rather than taking action, evidenced by a dip in the number of new sellers coming to market, particularly at the top-end. This is understandable when many of these sellers have more flexibility over when they act, but overall, it appears to be business as usual for the mass-market.”
Bannister added that housing has started to play a bigger role in the election campaign, with a flurry of manifesto pledges. But he adds many of these are continuations of existing schemes, revivals of old policies, or ideas which are only likely to help very specific parts of the market.
“Some of the housing proposals announced are a good start with positive intentions, however they could go further in supporting the majority of first-time buyers to get onto the ladder, or helping people in different circumstances to move.
“Mortgage rates have been elevated for much longer than most expected, and a first cut to the Base Rate would be a big boost to mover confidence, as well as having a far-reaching impact on the market should it, as expected, lead to lower mortgage rates. Lower mortgage rates will have the most immediate impact on the market, however we hope that well-thought out housing policies will lead to sustainable market improvements over the long-term.”
Former Rics residential chairman and north London estate agent Jeremy Leaf says: “Although only reflecting asking or aspirational prices, these Rightmove figures mirror a trend we have also noticed in our offices.
“Activity has reduced over the past few weeks probably more as a direct result of a likely delay in the cut of base rates than the forthcoming election. On the other hand, caution is more prevalent in demand for larger, more expensive properties where any tax changes are more likely to be felt after 4th July, whichever party is successful.
“Overall, viewings are down a little compared with the previous month, but buyers and sellers are in pause, not stop, mode as we’re not seeing unexpected withdrawals from transactions or serious re-negotiations.
“It’s still a buyers’ market generally so sellers must be realistic if they are to achieve their aims.”
Together group channel development director Chris Baguley says these figures are broadly positive. “The housing market continues to strengthen, with the overall number of agreed sales up 6% and new buyer enquiries 5% higher compared to a year ago.
“With the announcements in last week’s party manifestos; buyers, sellers, investors and developers will be weighing up each side’s housing policies ahead of the July outcome. For first-time buyers, the scrapping of stamp duty could well be a huge boost to them taking their first steps onto the property ladder.
“House building and development will continue to be a key priority in the next few weeks – with a focus on repurposing brownfield land. With our research finding nearly a fifth (19%) of property professionals wanting more government support for brownfield development, it’s promising to see this recognised – but now is the time for real action.”
MT Finance director Tomer Aboody says: “Northern markets are seeing a bigger boost in values and sales. The lower ends of the markets are usually the first to feel the difference whether positive or negative, due to the bigger market affordability within these price ranges.”
“With the general election looming, we are seeing some caution, but overall confidence within the market, as buyers are not too frightened of what might come.
“As mortgage rates seem to be holding firm, some buyers are still waiting for a change, with indications looking like a reduction will be coming.
“With a Labour government likely, there are some fears of untold taxes which could affect the market. Help is needed within the property market, but will Labour listen and act?”
