House prices have fallen in June for the first time since 2009, in a sign the spring selling season may be stalling.
The data, from a survey by Rightmove, has revealed that asking prices have fallen by o.4%, bringing the annual rate of price increase down to 1.8%, the lowest it’s been since April 2013.
The Rightmove survey has also uncovered significant regional differences in house price performance. Compared to May 2016, prices have increased by 11% on average in the North of England, but in the South prices have increased by only 3%.
Figures for the South are being weighed down by falls in house prices in London and the South East, which account for a significant proportion of the total market, where asking prices have fallen by 2.4% and 0.9% respectively.
Mile Shipside, director of Rightmove, said; “It now seems certain that we will have continuing political uncertainty, which the housing market traditionally dislikes, and with the first fall in June prices for eight years there is no doubt that the lack of stability is a factor.
“The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events.”
Further falls in house prices.
Mr Shipside also warned that falling house prices in summer could be an indication of a further slowdown in the market.
“Markets traditionally slow in the second half of the year, and with a slowing in the pace of asking price rises and the forthcoming months of political and economic confusion, the usual slower market in the second half of the year seems to be one of the few certainties in 2017.”
Falling house prices, and the prospect of prices continuing to drop, will add to worries for many landlords, who will be worried that being burdened by negative equity could prevent them from consolidating their position as they start to feel the effects of Section 24 and changes to Stamp Duty.
If you're a landlord worried about the impact of Section 24 and Stamp Duty, or you have a property which has fallen into negative equity, contact our team of experts for a consultation.