House prices remained steady in June, with asking prices unchanged despite election uncertainty. The average asking price is now £375,110. The North saw the most significant price increases, while most buyers and sellers continue with their plans unaffected by the election.
Property asking prices have dipped slightly this month, according to Rightmove, with a minor drop of £21 from their peak.
The current average asking price is £375,110, but properties generally sell for less, with Halifax reporting the average sale price at just under £289,000.
In comparison to June last year, asking prices have risen by 0.6%, or £2,251, according to Rightmove.
In some areas, particularly less expensive regions in the North of England, property prices have grown more notably.
Five of the six most affordable areas hit new price records. In the North East, prices increased by 1% over the month, while in the North West, they rose by 0.9%, and in the East Midlands, by 0.7%.
Yorkshire and the Humber saw the highest annual growth at 2.8%, although prices remained stable from month to month.
Conversely, more expensive regions like the East of England and London were the only areas to experience monthly price declines, with drops of 0.5% and 0.3% respectively.
The change in house prices can also vary depending on the size of the property. According to Rightmove, ‘top of the ladder’ homes, such as five-bedroom houses and detached four-bedrooms, saw a 0.6% price decrease over the past month and the smallest annual increase at just 0.1%
The average price for larger homes is now £689,810, with the recent monthly decrease partly due to higher mortgage rates affecting buyers’ budgets.
Homes for second-time buyers, typically three and four bedrooms, now cost £343,947 on average. These saw a slight increase of 0.2% over the last month and 0.4% over the past year.
Properties aimed at first-time buyers, which include homes with two bedrooms or less, saw a 0.1% drop in prices over the past month, bringing the average to £227,757. However, these properties had the highest annual price growth at 0.6%.
Buyers keep calm and carry on amid election
Rightmove stated that the upcoming general election hasn’t significantly impacted the property market, except for a slight decrease in listings of higher-priced homes.
In the two weeks following the unexpected election announcement, there was a 3% drop in the number of top-end properties coming to market compared to a year ago. This contrasts with an 11% increase in the previous two-week period.
Despite this, buyer interest remains steady and is now 5% higher than in June last year.
A Rightmove survey of over 14,000 people found that 95% of those planning to move said the election wouldn’t affect their plans.
Tim Bannister, Rightmove’s director of property science, noted that while most respondents intend to continue with their moving plans, some potential sellers are waiting and observing, particularly at the higher end of the market. He pointed out that these sellers often have more flexibility in timing their actions, but overall, the mainstream market remains active.
Ian Preston, group CEO at Preston Baker estate agents in Leeds, mentioned that the Government’s decision to call a general election hasn’t notably altered market conditions. He observed a small decline in listings last week, which he attributed to the usual dip seen during the half-term break when many families are away.
Rightmove stated that the upcoming general election hasn’t significantly impacted the property market, except for a slight decrease in listings of higher-priced homes.
In the two weeks following the unexpected election announcement, there was a 3% drop in the number of top-end properties coming to market compared to a year ago. This contrasts with an 11% increase in the previous two-week period.
Despite this, buyer interest remains steady and is now 5% higher than in June last year.
A Rightmove survey of over 14,000 people found that 95% of those planning to move said the election wouldn’t affect their plans.
Tim Bannister, Rightmove’s director of property science, noted that while most respondents intend to continue with their moving plans, some potential sellers are waiting and observing, particularly at the higher end of the market. He pointed out that these sellers often have more flexibility in timing their actions, but overall, the mainstream market remains active.
Ian Preston, group CEO at Preston Baker estate agents in Leeds, mentioned that the Government’s decision to call a general election hasn’t notably altered market conditions. He observed a small decline in listings last week, which he attributed to the usual dip seen during the half-term break when many families are away.
Renting now cheaper than buying with a 5% deposit… in the south
For years, renting has typically cost more than buying a similar-sized home with a mortgage.Â
However, recent increases in mortgage rates have changed this for many buyers with small deposits.Â
Research by estate agent Hamptons shows that buyers with a 5% deposit now pay, on average, £300 more per month in mortgage repayments compared to renting. This is based on an average mortgage rate of 6.1%, the typical rate for a 5% deposit mortgage according to Bank of England data.
Hamptons reports that buying with a 5% deposit is not financially viable in most areas south of Birmingham. In London, for example, a mortgage would cost the average renter an extra £775 per month, or £9,300 per year.
In Scotland and the northern regions of England (North West, North East, and Yorkshire & Humber), the difference in monthly costs between renting and buying with a 5% deposit is less than £100. In the Midlands, the difference is between £117 and £122 per month, according to Hamptons.
Rightmove’s research indicates a similar trend for those with 10% deposits.
To make renting and buying with a 5% deposit cost about the same each month, the typical mortgage rate would need to drop to 4.3%.
Aneisha Beveridge, head of research at Hamptons, said that despite rental growth at around 6% year-on-year, renting is still cheaper than buying for most households in the country.
High mortgage rates have made it harder for buyers with small deposits, pushing more people to rent for longer. The increase in the monthly cost of buying a home with a small deposit has made buying less affordable in most areas south of Birmingham.
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