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House prices up again thanks to 'robust' market in South
A late spring rush from sellers, however, suggests further increases in asking prices are unlikely.
Property asking prices in England and Wales increased 1% in June, according to Rightmove.
The South West saw the biggest monthly increase, with a rise of 1.9%, closely followed by London, with an increase of 1.7%. London also reported the biggest annual rise in asking prices – up 8.8%
The West Midlands, on the other hand, experienced both the largest monthly fall in prices – down 1.8% – and the biggest annual fall, with a drop of 2.8%.
Overall, prices are up 2.4% compared to June last year, which Rightmove said is thanks to the 'robust' market in the South. Although, in real terms prices have actually fallen considerably, added Rightmove, with London the only region to boast an inflation-busting increase over the last five years.
‘Property has a track record of being a hedge against inflation and continues to be seen as such. However, whilst it has fared better than many investments in the last five years, it has failed to hold its own in real terms in most parts of the country,’ said Miles Shipside, director at Rightmove.
'This reduction in real house prices would be great news for home-movers if their wages had kept pace with inflation and the return of mass-market mortgage finance was just around the corner,’ he added. ‘However, the reality is wage freezes, rising costs of living, and continuing tight mortgage funding have squeezed affordability for many buyers’.
Looking forward, meanwhile, Shipside said that we’ve likely seen the last of record asking prices for this year.
A late spring rush in the three weeks prior to the Diamond Jubilee bank holiday saw the highest amount of sellers come to market for two years. With buyers traditionally more scarce in summer, this suggests further increases in asking prices are unlikely.
The average property asking price is now £246,235 – up from £243,759 in May.
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