Rolling coverage of the latest economic and financial markets, as asking prices for British homes fall in June for the first time in six years
Rightmove’s survey covers asking prices, not the actual amount which buyers agree to pay for a home.
Jeremy Leaf, north London estate agent, reports that sale prices are ‘softening’, saying:
‘As expected, recent mortgage market turbulence is dampening the increase in prices and activity which we would usually see at this time of year.
‘However, these are, of course, only aspirational not achieved values. On the street, prices are softening as cash and equity-rich buyers in particular continue to hold sway over those relying on increasingly hard-to-obtain loans.
“Recent rate volatility hasn’t yet had a material impact on housing market activity because, if anything, those holding mortgage offers are keen to move sooner rather than later. That said, sentiment has taken a hit in recent weeks, which will keep a lid on trading volumes later this year.
Ironically, strong wage inflation rather than the mini-Budget is now the main brake on the housing market although the outlook will only become clearer this week. Those buying, selling or re-mortgaging will hope the Bank of England isn’t faced with a second ugly underlying inflation reading on Wednesday.”
