House prices drop despite predicted Autumn bounce

The housing market has not seen it's usual "autumn bounce" in property prices for the first time since 2010, analysis shows. 

 

Property website, Rightmove, said it would have expected house prices to rise at this time of year however instead, the asking price for a newly listed home fell £730 in one month to £304,770.

 

Figures also showed a decrease in agreed sales to 5.5 percent when compared to the same period in the previous year. The number of new properties being sold also dropped 7.8 percent. 

 

A director at Rightmove, Miles Shipside said Brexit's looming deadline could be impacting the housing market. 

 

Mr Shipside said: "Many have got used to living in the jaws of uncertainty since the referendum over three years ago, and have been getting on with their lives and housing moves.

 

"However, as we approach yet another Brexit deadline, there are signs that the increasing gnashing of teeth is causing some to hesitate."

 

Reports have suggested that a no-deal Brexit outcome could result in a drop of almost 20 percent in house prices. As a result, this could play out well for buyers who ask for lower prices and keep their position in strong negotiations. 

 

However, other experts have disputed this and said that the effects of Brexit have been overplayed. 

 

Independent buying agent, Henry Pryor, disputes that Brexit is the cause of declining house prices. He said that housing prices were down due to market pressures and that sellers need to be more realistic. He added that the cost of getting on the property ladder is also having an impact, so sellers were reducing the asking prices to entice buyers and sell their houses quickly. 

 

Mr Pryror said: "[Brexit] is a factor but it's the sprinkling on the top of these market movements, it's not the cause".

 

 

Whitestone Solicitors

Rochdale