Average asking prices are on the up following the Brexit vote, particularly for first time buyers, according to the latest house price index from Rightmove.
Asking Prices Up, Particularly for First Time Buyers
The property portal’s September data shows that the average asking price of new properties on the market rose by 0.7% over the month (or £2,277) to reach £306,499, following a 3% decline in the previous two months.
Asking prices are up by 4% annually, down on August’s 4.1% growth.
First time buyer properties, those with two bedrooms or less, showed particularly strong growth, rising by 3.3% on a monthly basis (or £6,240) to hit an average of £194,477. Year-on-year, asking prices increased by 10.5%.
Second stepper properties recorded growth of 0.5% on the month and 5.2% annually, reaching an average of £258,836.
However, properties at the top of the ladder continue to struggle, with asking prices up by just 1.2% on August and 2.7% on last year. The average asking price is now £545,387.
Rightmove also found that properties are staying on the market for an average of 62 days – down on last year’s average of 66 days.
Although eight regions saw falls in asking prices in August, just two recorded declines in September – the North West and Yorkshire and the Humber, where prices dropped by 0.1% and 0.7% respectively.
The Director and Housing Market Analyst at Rightmove, Miles Shipside, comments on the data: “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.”