The asking price of a property in England and Wales began to decline

The asking price of a property in England and Wales fell by 0.4% in June 2017, it happened for the first time since June 2009, and the annual price growth was at 1.8 percent. According to the largest real estate portal Rightmove , prices in June slipped compared to may of 2017, when monthly growth was at 1.2%, while the annual 3%. Headed by falling prices in London, the South-East of England and West Midlands, London prices fell 2.4%, and 0.8% in the South East and the Midlands.

There are regions where a slight increase asking prices by 0.6% in the East of England, 0.7% in the North-West and 0.8% in Wales.

The data also show that annual price growth fell 1.4% in London, 0.5% in Wales . Statistics annual prices continue to push up the Eastern and Central part of England, where the growth rate was 5.1% and 3.8%, respectively.

Definitely, the economic and political uncertainty affect the market. Now it seems obvious that the political uncertainty will continue to affect the property market in the UK, putting pressure on prices. In June 2017 we saw the first fall in asking prices after eight years of growth, most likely, the consequences of Brexit and other political changes in the country.

However, the demand for housing remains high and the number of transactions increased in the real estate market in the UK by 7% compared to the same period a year earlier. The most notable growth in demand in the Northern regions of England. The main driver of demand is the family, first time buying a house. Through the program “help to buy”, they dismantle all available cheap property. It is not surprising that asking prices for affordable housing increased by 3.5%. Support first-time buyers afford housing by local authorities, as well as low interest rates on mortgages, has led to the fact that it is much cheaper to buy an apartment or a house than to rent a similar house for this sector of the market.

In region-wise, sales velocity and the level of demand for housing varies. Property in London and surrounding cities, for the first time in many years, are not the drivers of price increases, but on the contrary, are in contradiction with the main market of the real estate in England, demonstrating the slowdown in prices. However, the unexpected results of the elections were not the reason for the decline in demand for housing – on the contrary – the first Monday after the election showed a 3% higher demand than the previous week. This means that, despite the political events, people continue to go about their usual business and to solve the housing problem.

® Helen Entree. 26.06.2017 G.

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