House prices see 0.9% monthly drop

The Rightmove house price index shows that buyer demand in the two weeks since the Referendum result is consistent with 2014, but down 16% on 2015 levels.

However Rightmove says that as 2014 was not distorted by the election, it is a better basis for comparison.

The index also shows that sellers seem undeterred – compared to the same period last year, the two weeks pre-referendum saw the number of new properties coming to market down by 8%, but the two weeks post-referendum saw figures up by 6%.

Most agents reported market momentum continuing due to shortage of suitable property for sale, buyers fearful of missing out on scarce choice, and affordability and availability of low mortgage rates.

Jeremy Duncombe, Director, Legal & General Mortgage Club, commented: “Given the uncertainty that has followed the UK’s decision to leave the EU, it’s not surprising that house prices have decreased month-on-month for the first time in a while. We need however to look at the annual trend and not a month in isolation. House prices are still rising faster much than inflation over a 12 month period, and a slowing of this growth is not necessarily a bad thing.

“It’s clear that demand for property still exceeds the housing supply on offer, just as it did before the Referendum. The recent report from the House of Lords calling for 300,000 new homes to be built per year will provide some much-needed pressure in this area. However, we will have to wait and see how the new Government plans to address the housing crisis in the UK, and the steps they are willing to take to ensure that more people have the chance to own their own home.”